Imagine a tiny principality offering the most dramatic scenery and the best skiing in the Pyrenees . Come to Andorra and experience it for real. Occupying a mere 450 square kilometres, Andorra is living proof that quality is always more important than quantity. Long under the wings of its two big brothers, France and Spain , 1993 saw Andorra stepping into independence after more than seven centuries of being under joint French and Spanish rule. As an independent nation, Andorra actively promotes its duty-free shopping; a trend which developed, interestingly enough, out of being a smuggling middle-agent between France and Spain in major wars.

Tourism, the mainstay of Andorra 's tiny, well-to-do economy accounts for roughly 80% of GDP. An estimated 9 million tourists visit annually, attracted by Andorra 's duty-free status and by its summer and winter resorts. Andorra 's comparative advantage has recently eroded as the economies of neighbouring France and Spain have been opened up, providing broader availability of goods and lower tariffs.

The banking sector, with its tax haven status, also contributes substantially to the economy. Agricultural production is limited-only 2% of the land is arable-and most food has to be imported. The principal livestock activity is sheep raising. Manufacturing output consists mainly of cigarettes & cigars, and furniture.