The magnetic compass operates on the principle that unlike magnetic poles attract each other whereas like magnetic poles repel each other. A magnetic compass works because the Earth is like a giant magnet, with a huge magnetic field surrounding it. The Earth has two magnetic poles. These two poles lie near the North and South poles. The magnetic field of the Earth makes a magnetized 'needle' of steel or iron when hung in a thread to swing into a north-south position. The needle shows the same movement when stuck through a straw or piece of wood floating in a bowl of water.
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