Norway is a country in Northern Europe occupying the western portion of the Scandinavian Peninsula as well as the volcanic island Jan Mayen and the Arctic archipelago of Svalbard. Norway borders the North Sea, the North Atlantic Ocean, Finland, Sweden, and Russia. The geography of Norway is rugged with steep fjords and mountains. The government system is a parliamentary constitutional monarchy; the chief of state is the king, and the head of government is the prime minister. Norway has a mixed economic system with a combination of free-market activity and government intervention. Norway is a member of the European Free Trade Association (EFTA).