Magnetism
A very common source of magnetic field found in nature is a dipole, with a "South pole" and a "North pole", terms dating back to the use of magnets as compasses, interacting with the Earth's magnetic field to indicate North and South on the globe. Since opposite ends of magnets are attracted, the north pole of a magnet is attracted to the south pole of another magnet. The Earth's North Magnetic Pole (currently in the Arctic Ocean, north of Canada) is physically a south pole, as it attracts the north pole of a compass.
A magnetic field contains energy, and physical systems move toward configurations with lower energy. When diamagnetic material is placed in a magnetic field, a "magnetic dipole" tends to align itself in opposed polarity to that field, thereby lowering the net field strength. When ferromagnetic material is placed within a magnetic field, the magnetic dipoles align to the applied field, thus expanding the domain walls of the magnetic domains.
Earth's magnetic field
The mechanism by which the Earth generates a magnetic field is known as a dynamo. The magnetic field is generated by a feedback loop: current loops generate magnetic fields (Ampère's circuital law); a changing magnetic field generates an electric field (Faraday's law); and the electric and magnetic fields exert a force on the charges that are flowing in currents (the Lorentz force). These effects can be combined in a partial differential equation for the magnetic field called the "magnetic induction equation",