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How is it possible that an Anglo-Saxon poem takes place in Geatland and Denmark?
The Anglo-Saxon scops wanted the poem to be set in a faraway land to create a sense of drama.
The Anglos, Saxons and Jutes were not native to Britain but to Scandinavia and northern Germany. It's likely a migrating tribe brought the poem with them.
Christian listeners preferred pagan characters to be foreigners and not Anglo-Saxons.
The poem was originally set in Britain, but monks of Scandinavian descent changed the place names when they transcribed the poem.
British monks proselytizing in Scandinavia heard the poem and then wrote it down when they returned home.