Situated on an isthmus, some categorize it as a transcontinental nation connecting the north and south part of America. It borders Costa Rica to the north-west, Colombia to the south-east, the Caribbean Sea to the north and the Pacific Ocean to the south. It is an international business center and is also a transit country. In Central America, it is the most industrialized country. Panama has a tropical climate. Temperatures are uniformly high- -as is the relative humidity--and there is little seasonal variation. Panama's two coastlines are referred to as the Caribbean (or Atlantic) and Pacific, rather than the north and south coasts. Panama is also home to Balboa Hill, which offers a view of both the Pacific Ocean and the Atlantic Ocean.
Panama's tropical environment supports an abundance of plants. Forests dominate, interrupted in places by grasslands, scrub, and crops. Although nearly 40 percent of Panama is still wooded, deforestation is a continuing threat to the rain-drenched woodlands. Panama has two national parks. Darién National Park is a world heritage site in Panama. It is about 325 kilometers from Panama City, and is the most extensive of all national parks of Panama and is one of the most important world heritage sites in Central America. The sheer beauty of the landscape and forest generally captivate visitors. Visitors will usually fly into El Real, the closest town to the park. Soberanía National Park (Parque Nacional Soberanía) is a national park in Panama near the banks of the Panama Canal in the provinces of Panamá and Colón, some 25 km from Panama City. The Volcán Barú (also Volcán de Chiriqui) is the tallest mountain in Panama and is 3,474 metres (11,398 ft) high.
Due to its height and Panama's relatively short width, it is possible to see both the Pacific Ocean and Caribbean Sea from Volcán Barú's peak on a clear day.