Constitutionally, the Kingdom of Denmark encompasses the realm or the country, but the Faroe Islands and Greenland have an extended degree of autonomy to govern their relations.

However, due to their separate historical and cultural identities, these parts of the Realm now have an extensive degree of self-government and have assumed legislative and administrative responsibility in a substantial number of fields.

[29] The name was used by Danish and Greenlandic authorities in the negotiations for home rule introduced in 1979, and has become popular since the beginning of the 1990s.

[42] The Kingdom has submitted five claims to the United Nations that its exclusive economic zone extends beyond the usual 200 nautical miles limit: one north and one south of the Faroe Islands, and three around Greenland.

One Greenlandic claim includes the North Pole and the Lomonosov Ridge, and extend all the way to the Russian exclusive economic zone.

[51] In 1814, Denmark ceded Norway to Sweden under the Treaty of Kiel, but kept control of the Faroe Islands, Greenland, and Iceland.

One exception was Norway who in 1931 occupied parts of East Greenland, but abandoned their claim in 1933, when it lost the case at the Permanent Court of International Justice.

In 1944, Iceland abolished the personal union and adopted a new constitution that established the current republic, after a referendum on the subject.

[49] During World War II, the Faroe Islands were occupied by the United Kingdom and they largely administered themselves.

[53][55] Proponents of the first interpretation include Alf Ross,[53] Poul Meyer[53] and Jens Peter Christensen.

[56] Ross, the chief architect of the Faeroese home rule, argued that it was "a municipal self-government of extraordinary extensive scope".

[53] Similarly, Christensen, a Supreme Court judge, said that due to the special circumstances, the scope of delegation need not be strictly defined.

[53] Mitens, a Faeroese jurist and politician, argued that the Faeroese home rule had been approved by both the Løgting and the Rigsdag, so it was an agreement between two parties, in particular because the approval by the Løgting happened according to special rules put in place in 1940 with the consent of the Danish representative there, during the occupation by the United Kingdom.

[53] Sørensen said the intention with the Faeroese home rule was that it should not be unilaterally changed, as stated in the preamble, so it had that effect.

[51] The Kingdom of Denmark constitutes a unified sovereign state, with equal status between its constituent parts.

[59] Devolution differs from federalism in that the devolved powers of the subnational authority ultimately reside in central government, thus the state remains de jure unitary.

The Danish government provides an annual grant to the Faroese and the Greenlandic authorities to cover the costs of these devolved areas.

More significantly, the Act specifies the powers devolved from the Government of Denmark, including: local government and municipal affairs; taxation, at a local and territorial level; public services, including police and town planning; welfare services, such as housing; primary and secondary education; Archives, libraries, museums; agriculture and fishing; entertainment; among other areas.

[6] On 21 June 2009, Greenland assumed self-determination with responsibility for self-government of judicial affairs, policing, natural resources, immigration and border controls.

The Faroe Islands have gradually taken control of more and more areas of responsibility according to their Home Rule Act from 1948.

[62] The Faroese/Danish act of 2005 states: "This law is based on an agreement between the Governments of the Faroe Islands and Denmark as equal partners.

[citation needed] The Kingdom of Denmark as a whole is a member of the United Nations, NATO, the OECD and the World Trade Organization.

The Faroe Islands and Greenland are associated members of the Nordic Council in their own right as part of Denmark's membership.

Although the Kingdom of Denmark is a member of the European Union, both areas have special dispensation and remain outside the EU.

Neither Greenland nor the Faroe Islands can write laws that concern the relationship with other states, nor laws that apply to the entire Realm; furthermore, the Supreme Court (Danish: Højesteret) in Copenhagen is the final legal instance, and legal matters from Greenland and the Faroe Islands must be prepared for that court, like any Danish matter.