When you place a graphic, you will see a screen-resolution version of the file in the layout, so that you can view and position it, but the actual graphic file may be either linked or embedded.

• Linked artwork is connected to, but remains independent of, the document, resulting in a smaller document. You can modify linked artwork using transformation tools and effects; however, you cannot select and edit individual components in the artwork. You can use the linked graphic many times without significantly increasing the size of the document; you can also update all links at once. When you export or print, the original graphic is retrieved, creating the final output from the full resolution of the originals.

• Embedded artwork is copied into the document at full resolution, resulting in a larger document. You can update the document whenever you like; as long as the artwork is embedded, your document is self-sufficient.

To determine if artwork is linked or embedded, or change its status from one to the other, use the Links panel.

If the embedded artwork contains multiple components, you can edit them discretely. For example, if the artwork contains vector data, Illustrator converts it to paths, which you can then modify using Illustrator tools and commands. Illustrator also preserves the object hierarchy (such as groups and layers) in artwork embedded from certain file formats.