Virtual teams have several advantages over traditional colocated teams, including reduced costs from eliminating travel expenses, a larger pool of talent to draw from regardless of location, and the ability to operate across time zones to facilitate around-the-clock work. However, virtual teams also face significant challenges like difficulties building trust and communication breakdowns when members are geographically dispersed and rely primarily on technology to collaborate. Effective practices for managing virtual teams include establishing clear expectations, facilitating informal social interactions to build relationships, and providing training to develop skills for virtual collaboration.