The term 'Canal or Country' can be solved by the 6-letter word 'PANAMA'. PANAMA is a country located in Central America, bordered by Costa Rica to the west, Colombia to the southeast, the Caribbean Sea to the north, and the Pacific Ocean to the south. It is best known for the PANAMA Canal, a man-made waterway that connects the Atlantic and Pacific Oceans, allowing ships to travel between them without having to go around South America. The canal was built by the United States in the early 20th century and is now managed by the Panamanian government.