Illustrator only most other adobe products primarily works with vector images. This means these images are easily scalable without any reduction in quality and is preferred for the creation of banners, logos and business cards.
Photoshop which is often used by designers to create these files primarily works with raster images which are made up of pixels hence the larger you scale these images up the greater the lose of quality of the image. Also the file size becomes exponentially greater. This is an issue that does not plague Illustrator and it's files.
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