How do the Winter Olmypics work exactly?

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Sochi_Spirit

Hello friends!  I was wondering if you were following the Winter Olympics at the moment.  You probably are, since this is a sports-related internet area.

How do the Olympics work?  I notice first of all that not every country has an Olympic team.  Is that by choice or how does that work out.  I know there are 80 nations participating this time, but there are over 200 sovereign states in the world currently.

How does competition for the medals work?  Are they done in rounds?  When are the medals awarded?  I also notice that some nations only have a team of 3 or 4 people.  How does that work? 

I'm thanking in advance.