1) Earth itself acts like a giant magnet with a north and south pole that generates a magnetic field extending 50,000 miles into space, allowing compasses to function by pointing towards Earth's magnetic north pole. 2) A compass needle is magnetic and orients itself towards the north-seeking pole of Earth's magnetic field, though it may be affected inside steel buildings or ships due to magnetic attraction between the needle and nearby steel. 3) Magnetic fields surround all magnets and are represented by magnetic lines of force showing the direction and strength of the magnetic force, with lines closest together at the poles where the force is strongest.