The main industries are oil, natural gas, sheep farming and tourism. The largest island is Tierra del Fuego, or Isla Grande, with an area of 48,100 sq km. Half of this island, and the islands west of it, are part of the Magallanes Region of Chile, the capital and chief town of which is Punta Arenas. The eastern part of the archipelago belongs to Argentina, forming the federal district of Tierra del Fuego; its capital, Ushuaia, is the world's most southerly town.
Its name comes from the many fires (fuego in Spanish) of the native americans, which were visible from the sea. The name was created by Ferdinand Magellan, who was the first European to pass it in 1520.