Final answer:
EDI is characterized by its adherence to structured and theoretical information formats, its adaptability to various systems, and its capacity to handle large scale processes. Telecommunications advancements have fostered its adoption by lowering costs and increasing transmission speed, while international agreements have promoted global trade and use of EDI.
Step-by-step explanation:
Electronic Data Interchange (EDI) is a method by which businesses can send information to each other in a standardized electronic format, replacing traditional paper-based communication methods. There are several important characteristics of EDI that make it an efficient system for businesses: Based on information theoretic approaches: EDI uses a structured data format that makes it easy to interpret and communicate large amounts of data. This is crucial for maintaining the integrity and accuracy of the data transmitted.
Highly adaptable: EDI systems are designed to be flexible, allowing integration with various internal and external information systems. This adaptability is essential for the ever-changing demands of modern business. Large scale processes: EDI facilitates large scale processes, such as mass orders and transactions, making it easier and more cost-effective to conduct business on a global scale.
Moreover, advancements in telecommunications have heavily contributed to the widespread adoption of EDI, by significantly lowering the costs and increasing the speed of data transmission over long distances. International agreements and treaties have further encouraged the global trade, thereby promoting the use of EDI. Combined with its ability to ensure accurate documentation and strong communication skills, EDI remains a critical tool for international business operations.