ABSTRACT
This chapter provides external dimension of inherent size-related difficulties in states. Small states are a very diverse group. Several of them are among the most prosperous states on the planet, whereas others are among the most fragile. Small states are a very diverse group. Basically, small states survive due to their larger neighbouring states' willingness to respect their independence. For instance, Vital (1967) argues that small states cannot withstand stress due to their more limited resources as compared with larger states. The chapter presents that extent to which Iceland obtained external shelter from the time it took full control of its foreign affairs from Denmark in 1940 to the present. The Act of Union of 1918 between Iceland and Denmark granted Iceland full autonomy in its foreign affairs. The chapter also presents an overview of the key concepts discussed in this book.
