Final answer:
An electronic data interchange (EDI) refers to the computer-to-computer transmission of business-related documents, enabling efficient and automated interactions between a retailer and its vendors. This technology is integral to the digitization of the business-to-business marketplace and has been bolstered by advancements in telecommunications and globalization.
Step-by-step explanation:
The transaction described in the question refers to a form of electronic data interchange (EDI) — a protocol that enables the computer-to-computer transmission of business data, such as sales data, purchase orders, invoices, and details concerning returned merchandise, between a retailer and its vendors. This protocol is part of the larger trend toward digitization and automation in the business-to-business marketplace.
Advancements in telecommunications have significantly facilitated long-distance economic connections of production and sales. Digital products, like software and media, as well as services like financial advice or travel planning, have become easier and cheaper to transport over networks. Moreover, globalization, supported by international agreements, has expanded trade by enabling business-to-business websites to connect buyers and suppliers across the globe.
These technological improvements have increased competition for retail businesses by allowing consumers and businesses to engage in transactions remotely. Every purchase made online, from books to computer equipment, illustrates the power of interconnected markets and the efficiency of electronic transactions in the modern economy.