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alt title(s): Call A German A Smeerp
Inuit, but with mystical fighting skills.

What is this "Japan" you speak of? I have never heard of it before.
Miko Miyazaki, Order Of The Stick

It is difficult to be truly original when creating fiction, and even if one manages to pull it off, one runs the risk of putting off the audience by having one's creation seem too strange. Much safer, then, to make your setting contain human cultures that are take-offs of real ones.

This is especially common in fantasy settings, but by no means exclusive to it. It's often found in satire, as a means of indirectly poking fun at the culture in question. In such cases the countries may have significant names.

There are also sound literary reasons for using this trope. Making the Shire an idealised England transplanted to Middle-Earth makes it easier for readers to identify with the point of view characters, since they probably have much more in common with Bilbo than with Thorin. Gavriel Kay's The Lions of Al-Rassan is a thinly disguised historical novel, but changing the names of the countries and religions means the readers don't know how the story will end, helping to maintain dramatic tension.

Most Fantasy Counterpart Cultures are based on the theme park version of a particular region of the world. (See Hollywood Atlas.)

Compare with Istanbul Not Constantinople, when a real place is referred to with a more archaic or obscure name (e.g. "Columbia" instead of "USA"). Compare also with Days Of Future Past, where a futuristic society duplicates (often explicitly and intentionally) the culture and styles of a historical period.

Examples

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Expansion Pack WorldSettingsFisher King