Book excerpt: Monaco is a small independent state located on the Mediterranean coastline of France. The principality, which has a population of around 39,000 people, is the second smallest country in the world, and it covers an area of just 2.02 square kilometers. Monaco is known for its luxurious lifestyle, gambling industry, and tax haven status. It is a popular tourist destination and attracts millions of visitors every year due to the stunning views of the Mediterranean Sea, the Formula One Grand Prix, and the famous Monte-Carlo Casino. Monaco has a long and interesting history dating back to the Roman period. It was officially established as a principality in 1297 by the Grimaldi family who continues to rule the country to this day. Over the centuries, Monaco has managed to maintain its independence and sovereignty by building strong diplomatic relations with other countries around the world. Despite its small size, the principality is a wealthy nation and boasts high standards of living. The economy is primarily based on tourism, gambling, and finance, and it has a favorable tax system that attracts wealthy individuals and businesses. Monaco is also known for its glamorous events such as the Red Cross Ball and the International Circus Festival.