The Isthmus of Panama is a narrow strip of land that connects North America and South America. It is located between the Caribbean Sea to the north and the Pacific Ocean to the south. This geographical feature is significant because it serves as a natural land bridge, allowing for the movement of people and goods between the two continents. The isthmus is also home to the Panama Canal, a major waterway that was completed in 1914. The canal allows ships to transit between the Caribbean and the Pacific without having to navigate around the southern tip of South America, greatly reducing travel time and distance for maritime trade.