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Cyprus is geographically in Western Asia. Historically, Cyprus has always been a bridgehead between Europe and Asia, with interchanging periods of Levantine, Anatolian, and Greek influences.

Economic affairs in Cyprus are dominated by the division of the country into the southern (Greek) area controlled by the Cyprus Government and the northern Turkish Cypriot-administered area. The Greek Cypriot economy is prosperous but highly susceptible to external shocks. Erratic growth rates in the 1990s reflect the economy's vulnerability to swings in tourist arrivals, caused by political instability on the island and fluctuations in economic conditions in Western Europe. Economic policy in the south is focused on meeting the criteria for admission to the European Union. As in the Turkish sector, water shortage is a growing problem, and several desalination plants are planned. The Turkish Cypriot economy has about one-fifth the population and one-third the per capita GDP of the south. Because it is recognized only by Turkey, it has had much difficulty arranging foreign financing, and foreign firms have hesitated to invest there. The economy remains heavily dependent on agriculture and government service, which together employ about half of the work force. Moreover, the small, vulnerable economy has suffered because the Turkish lira is legal tender. To compensate for the economy's weakness, Turkey provides direct and indirect aid to tourism, education, industry, etc.

Cyprus is mentioned by biblical historian Flavius Josephus as being settled by Kittim, son of Javan, grandson of Japheth. "Cethimus possessed the island Cethima: it is now called Cyprus; and from that it is that all islands, and the greatest part of the sea-coasts, are named Cethim by the Hebrews: and one city there is in Cyprus that has been able to preserve its denomination; it has been called Citius by those who use the language of the Greeks, and has not, by the use of that dialect, escaped the name of Cethim."

The Turkish Cypriot area proclaimed its independence in 1975, and the self-styled Turkish Republic of Northern Cyprus was established in 1983. This state was recognised only by Turkey. Furthermore, Organization of the Islamic Conference granted it observer member status under the name of "Turkish Cypriot State". The other power with territory on Cyprus is the United Kingdom. Under the independence agreement, the UK retained title to two small areas on the southern coast of the island, around Akrotiri and Dhekelia, known collectively as the UK sovereign base areas. They are used to host military bases.

Cyprus (in Greek Kypros and in Turkish Kibris) is an island in the eastern Mediterranean Sea, 113 kilometres (70 miles) south of Turkey and around 120 km west of the Syrian coast.

EU law is currently not applied in the Turkish occupied north. The Union has promised to aid and to work towards lifting the trade sanctions imposed by the European Court, but they have ruled out diplomatic recognition of northern Cyprus.

The music of Cyprus includes a variety of classical, folk and popular genres. Recent trends have seen the rise of Ayia Napa, a resort, as a home for UK garage music, similar in its evolution to that of the island Ibiza.

Cyprus has an open, free-market, serviced-based economy with some light manufacturing. The Cypriots are among the most prosperous people in the Mediterranean region. Internationally, Cyprus promotes its geographical location as a "bridge" between West and East, along with its educated English-speaking population, moderate local costs, good airline connections, and telecommunications.

The 1960 Cypriot Constitution provided for a presidential system of government with independent executive, legislative, and judicial branches, as well as a complex system of checks and balances, including a weighted power-sharing ratio designed to protect the interests of the Turkish Cypriots. The executive, for example, was headed by a Greek Cypriot president and a Turkish Cypriot vice president, elected by their respective communities for 5-year terms and each possessing a right of veto over certain types of legislation and executive decisions.

Cyprus has been liberalizing its trade regime by eliminating import quotas and licenses and lowering tariffs on most products as a result of its obligations under the new world trade agreement and its Customs Union agreement with the European Union. As a result, U.S. products are becoming more competitive in Cyprus and prospects for further expansion of bilateral trade ties are excellent.

The U.S. embassy in Nicosia sponsors a popular pavilion for American products at the annual Cyprus International State Fair, hosts the Commercial Awards dinner, and organizes other events to promote U.S. products throughout the year. Total U.S. exports to Cyprus were about $700 million in 1997 (compared with $670 million in 1996), making the U.S. Cyprus' number-one supplier of total imports for the third year in a row. Exports include American tobacco and tobacco products, automatic data processing and other machinery, and cereals. Principal U.S. imports from Cyprus consist of clothing, footwear, steel tubes and pipes, dairy products, and various food items.

The central plain (Mesaoria) with the Kyrenia/Girne and Pentadactylos/Besparnak mountains to the north and the Troodos mountain range to the south and west. There are also scattered but significant plains along the southern coast. The climate is temperate, Mediterranean with hot, dry summers and cool, variably rainy winters.