Reykjavik was originally settled by the Nordic people in 870, naming the area upon arrival.  The name is said to translate to “Bay of Smokes” which refers to the smoky fog emanating from Reykjavik’s hot springs.

The area was basically left alone by settlers until the eighteenth century when the Danish came to area and began to use the area as a location for supporting industry.  The primary export from the area was wool, although mining, agriculture, fishing and ship building all also occurred here during this time period.

When the Danish abolished monopoly trading, they offered an exclusive trading charter to Reykjavik which Reykjavik accepted.  This occurred in 1786 and is considered to be the year of the founding of Reykjavik.  International trade by the people of Reykjavik didn’t take off for approximately another one hundred years, but eventually, they did establish themselves in the international market. 

Although the founding of Iceland occurred in 1786, Iceland did not gain independence from Denmark until 1918.  This occurred as a result of a large political movement which was centered in Reykjavik.  At the time that they became independent, the population of Reykjavik was approximately 17, 000 people.  With the influence of tourism causing a boost to the economy and the people of Reykjavik working hard to establish themselves in the international scene, this number has grown by more than 100,000.

More information about Reykjavik is available at http://en.wikipedia.org/wiki/Reykjav%... .