Caernarfon, Kingdom Of

Ruler:   his illustrious Majesty, Thrain Orcbane, (Fighter/Thief, 9th/13th level)
Capital:   CaerDurin
Population:   195,000
Demi-Humans:   almost all dwarves and gnomes
Humanoids:   many orcs, goblins, kobolds, and giants
Resources:   gold, silver, platinum, fine metal craft goods
Type of Government:   Feudal Monarchy
Method of Succession:   Father To Eldest Son

This dwarven Kingdom is the home of perhaps 70% of the (known) world's dwarves and gnomes. The boundaries of this kingdom are far from secure, and the area is heavily infiltrated with all sorts of humanoids, being on the edge of the wilderlands as it is. The dwarves are in a constant state of warfare with these humanoids, and maintain a relative peace by the "Strong Point" method of defense. That is, they secure small pockets around their underground cities, and leave the rest of the area to the humanoids. Of course, this makes commerce difficult, but that is how the dwarves like it, since if the area were secure it might tempt more humans etc., to try to mine for the precious metals and minerals that the dwarves covet so.

Dwarven-made armor is sought after the world over, but it is hard to come by for several reasons. First, as pointed out above, the trade routes are rather hazardous, causing the merchants' mark-up to be considerable. Additionally, dwarves spend most of their effort on making things for dwarves, and when they do sell it, it is at a high price.