Your question is answered HERE in detail.
And here is a the relevant part from that wikipedia page:
In Mac OS System 7 and later, an alias
is a small file that represents
another object in a local, remote, or
removable1 file system. It is
similar to the Unix symbolic link, but
with the added benefit of working even
if the target file moves to another
location on the same disk (in this
case it acts like hard link, but the
source and target of the link may be
on different filesystems). As a
descendant of BSD, Mac OS X supports
Unix symbolic links as well.