It stands for application programming interface (API) and specifies how some software components should interact with each other.It's basically set of routines,protocols and tools for building software applications.
http://www.youtube.com/watch?feature=player_detailpage&v=USp-hLfDukU#t=43
There are API's for OS (WinAPI), API's for other applications (like databases) and for specific libraries (for example, image processing) etc.
When we copy and paste a text from one application to another it's the API that allows that to work.We need API to communicate with mobile devices and between websites
From business perspective API is a product for the company
http://www.youtube.com/watch?feature=player_detailpage&v=PDA9lXPcOfc#t=69
Types of APIs
There are many different types of APIs for operating systems, applications or for websites.
eg : Windows has many API sets that are used by system hardware and applications.Popular API Examples
1. Google Maps API:
2. YouTube APIs
3. Flickr API
4. Twitter APIs:
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