And a bit more robust version

DECLARE @SAMPLE TABLE (ID INT NOT NULL, STRING VARCHAR(200) NOT NULL)

INSERT INTO @SAMPLE (ID,STRING)

VALUES (1,'CANADA USA''ENGLAN SPAIN'' ITALY '' FRANCE GERMANY ''BRAZIL ARGENTINA''ROMENIA HOLLAND''');

SELECT

S.ID

,RTRIM(LTRIM(ISNULL(Y.Item, X.Item))) AS OUT_STRING

FROM @SAMPLE S

CROSS APPLY dbo.DelimitedSplit8K(S.STRING,CHAR(39)) AS X

OUTER APPLY (SELECT s.Item

FROM (SELECT RTRIM(LTRIM(X.Item)) Item) i

CROSS APPLY dbo.DelimitedSplit8K( i.Item, ' ') s

WHERE X.ItemNumber%2 = 1

AND LEN(s.Item) > 0) Y

WHERE LEN(X.Item) > 0;