With very few natural resources, the economy of Denmark relies almost entirely on human resources. The service sector makes up the vast amount of the employment and economy. Its industrialised market economy depends on imported raw materials and foreign trade. Within the European Union, Denmark advocates a liberal trade policy. Its standard of living is average among the Western European countries - and for many years the most equally distributed as shown by the Gini coefficient - in the world, and the Danes devote 0.8% of Gross National Income (GNI) to foreign aid. It is a society based on consensus (dialogue and compromise) with the Danish Confederation of Trade Unions and the Confederation of Danish Employers in 1899 in Septemberforliget (The September Settlement) recognising each others right to organise, thus, negotiate. The employer's right to hire and fire their employees whenever they find it necessary is recognised. There is no official minimum wage (Danish: minimumsløn) set by the government; the minimum of wages (Danish: mindsteløn) is determined by negotiations between the organisations of employers and employees.

The Kingdom of Denmark (Danish: Kongeriget Danmark, pronounced [ˈkɔŋəʁiːəð ˈdanmɑɡ̊] ( listen)) is a constitutional monarchy and sovereign state consisting the country of Denmark in northern Europe and two autonomous constituent countries, the Faroe Islands in the North Atlantic and Greenland in North America. The kingdom is a unitary state with some power being devolved from Denmark proper to Greenland and the Faroe Islands; this polity is referred to as the Danish Realm. Denmark proper is the hegemonial area, where judicial, executive, and legislative power resides. The Faroe Islands are defined to be a community of people within the kingdom, and the Greenlandic people are defined as a separate people with the right to self-determination.

Denmark is the southernmost of the Nordic countries, located southwest of Sweden and south of Norway, and bordered to the south by Germany. The country consists of a large peninsula, Jutland and many islands, most notably Zealand, Funen, Lolland, Falster and Bornholm, as well as hundreds of minor islands often referred to as the Danish Archipelago.