New Zealand is an island country located in the southwestern Pacific Ocean comprising two main landmasses (the North Island and the South Island) and numerous smaller islands. The geography of New Zealand is highly varied, from snow-capped mountains to lowland plains. The government system is a parliamentary democracy and a Commonwealth realm; the chief of state is the queen of the United Kingdom, and the head of government is the prime minister. New Zealand has a free market economy in which the prices of goods and services are determined in a free price system. New Zealand is a member of the Asia-Pacific Economic Cooperation (APEC) and has free Trade Agreements with every country in the East Asia region, including the Korea-New Zealand Free Trade Agreement, signed in 2015.