The fetal circulation differs from adult circulation due to the presence of three major vascular shunts that allow blood to bypass the lungs while oxygen is received from the placenta. The placenta functions as the fetal lungs, exchanging gases and nutrients between maternal and fetal blood without their blood mixing. At birth, changes in pulmonary and systemic vascular resistances cause the ductus arteriosus and foramen ovale to close, adapting circulation to extrauterine life with gas exchange occurring in the lungs.