Raster graphics are made up of pixels and have a fixed resolution, so they deteriorate in quality when resized. They can be compressed into smaller file types like JPEG, which further reduces quality over multiple saves. Vector graphics are made up of paths and strokes defined by a start and end point, so they can be scaled without losing resolution. Common raster formats are JPEG, TIFF, GIF and BMP while vector formats include AI, EPS and PDF. Each format has advantages like file size or quality but also disadvantages such as inability to edit or large file sizes that impact loading and transferring.