Radiosity is a rendering technology that simulates in a realistic manner the way that light interacts in an environment.
There are certain benefits when using radiosity lighting over standard lighting, one of these is the improved image quality, for example, 3DS Max’s radiosity technology can produce more accurate photometric simulations of the lighting within scenes, when using radiosity effects such s indirect light, soft shadows, and colour bleeding between surfaces will produce images with a much more realistic and natural finish, this standard of image is simply not achievable with standard scan-line rendering. Images using radiosity technology will give a more predictable example of what your finished design will look like when using specific lighting effects.
The main benefits of radiosity being that it will render lighting ina much more sophisticated, complex and realistic way as show below, but a significant disadvantage of using radiosity is that it will also take a much longer time to render than that of a standard lighting render.

Photometrics are used to specify light entensity, examples of the units used are lumens and candelas.
There are two kinds of illumination, global illumination and local illumination, the differences between the way these two render algrithms are as follows:
Local: Light sources shine directly on Object
Global: Lights from objects shining on other objects, ambient illumination
An algorithm is a formula/set of steps for solving a specific problem, an algorithm must be unambiguous and have a distinct stopping point, an algorithm can be expressed in any language, be it a natural language such as English or a programming language such as FORTRAN.
The two kinds of global illumination algorithms that are used in 3DS Max are radiosity and raytracing. Ray tracing works by recognising that although there may be billions of protons traveling in a room that the most important of these photons are the ones that enter the eye. The ray tracing algorith then works by tracing rays backwards from all the individual pixels on the screen into the 2d model, this way we compute only the information needed to construct the image.
Below is an example of some basic ray tracing:


