The fetal circulation includes the umbilical cord and placenta, which provide oxygen and nutrients to the fetus. There are three circulatory shunts present in fetal life - the ductus venosus, ductus arteriosus, and foramen ovale - that allow blood to bypass the lungs and ensure proper blood flow and gas exchange. At birth, clamping of the umbilical cord and inflation of the lungs causes closure of the shunts and transition to the neonatal circulation.