Panama is an ISTHMUS, a narrow strip of land connecting two larger landmasses, located in Central America. It is known for the Panama CANAL, a man-made waterway that connects the Atlantic and Pacific Oceans. The CANAL was built by the United States in the early 20th century and is now managed by the Panamanian government. Additionally, Panama is known for its iconic HAT, which is made from straw and is typically worn by farmers and fishermen.