Extensible Markup Language, text format, commonly known as XML, created to structure, store, and send electronic information, especially on the World Wide Web. XML is similiar to Hypertext Markup Language (HTML, which is used to created pages on the web. The main difference between the two is that HTML determines how web pages look where as XML categorizes information on a Web Page.
Many Companies are developing specific XML document types to support the electronic exchange information related to their business. The Use XML is popular for business to business communication because it allows to companies to create XML tags unique to their industry. For example, in the book industry book publishers and booksellers might choose to define their own XML tags for information about authors, titles, and publication dates for the information they exchange. Similarly, an automaker and an auto dealer might choose to define their own unique tags to identify car models, body styles, and price. This type of business application software is expected to make business transactions over the Web more cost-efficient and productive.
Source Microsoft encarta 2009

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