Final answer:
Electronic Data Interchange (EDI) allows companies and customers to exchange business data electronically over telecommunication links. Technological advances in data transmission and global trade have supported the growth of digital products and services. Changes in technology ended monopolies like AT&T's, fostering competition.
Step-by-step explanation:
A system that enables a company and its customers to use a telecommunication link to exchange business data electronically over a private line of communication is typically referred to as Electronic Data Interchange (EDI). This technology has revolutionized how companies conduct business by allowing for cheaper, faster, and better-quality data transmission. The adoption of telecommunications and the transition from traditional wired connections to advanced mediums such as microwave, satellite transmission, and cellular phone systems has vastly expanded the capabilities of businesses to manage long-distance economic connections for production and sales.
Modern products and services which can easily be digitized, such as computer software, financial advice, and travel planning, greatly benefit from these technological advancements. Moreover, international agreements and treaties have further encouraged greater trade, utilizing these telecommunications systems to lower costs and enhance efficiency. The evolution of technology from wired to microwave and satellite transmission also led to increased competition as seen with the historical example of AT&T losing its monopoly, allowing for multiple firms to leverage the same transmission mechanisms.