Frozen rocks, penguins, and land mines... Always a winning combination, isn't it? ...Don't answer that. Anyway: The Falkland Islands are a British overseas territory, located just off South America. It's most famous for The Falklands War, although there was also a notable naval battle there at the beginning of World War One. The Falklands War significantly increased the fame (or notoriety) of the Exocet anti-ship missile.