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One addition to what yodapaul said, on a larger scale router are used to route traffic much like a switch. However a switch will route traffic to a single machine while routers can route traffic for multiple IP's to a specific port.
For example, with a router you could do something like all traffic to address range 68.15.0.0 - 68.15.255.255 go out port A, all traffic to address range 64.200.0.0 - 64.200.255.255 go out port B.
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