Palau, or formally known as the Republic of Palau, is an island country located in the western Pacific Ocean. The country was also historically called as Belau, Palaos and even Pelew. The country approximately has 340 islands and it forms the western chain of the Caroline Islands along with parts of the Federated States of Micronesia.\r\nThe total area of Palau is 458.4 sq. km. making Palau one of the smallest countries in the world. Of the different islands present, Koror is the most populous one. The country’s capital Ngerulmud is located on the nearby island of Babeldaob, in Melekeok State. The country shares its maritime borders with Micronesia, Indonesia and the Philippines.\r\nThe country was formed approximately 3000 years ago by migrants from Maritime Southeast Asia. Along with other Pacific Islands, Palau was made a part of the US-governed Trust Territory of the Pacific Islands in the year 1947. After voting against the Federated States of Micronesia in the year 1979, the islands gained complete sovereignty in 1994 under a Compact of Free Association with the United States.\r\nPalau is a presidential republic in free association with the USA which provides defense, funding and access to social services. And Palau’s economy is mainly dependent on sectors like tourism, subsistence agriculture and fishing and the significant portion of the Gross National Product (GNP) derived from foreign aid. The country’s currency is the US Dollar