An API is a set of rules and protocols that allows different software applications to communicate with each other.
APIs work by enabling seamless interaction between systems, like a translator facilitating communication between two people speaking different languages.
Important components of an API include endpoints, requests, responses, authentication, documentation, rate limiting, versioning, data format, and error handling.
APIs are crucial for product managers as they facilitate integration of software systems, enable development of new features, and improve user experience.