An emulator is a specific type of program that mimics hardware. Windows is not a piece of hardware, ergo Wine Is Not an Emulator. It's merely a clone of the Windows API.
This is probably the best answer you will get that is clear and simple. Out of interest the term I use to explain to others the concept is that WINE is a compatibility layer between Linux and Windows. Does that seem an accurate use of the word? It tends to set the right impression in the minds of the people I've explained it too.
There are software emulators, and there are hardware emulators. According to Wikipedia:
"A software emulator allows computer programs to run on a platform (computer architecture and/or operating system) other than the one for which they were originally written." (http://en.wikipedia.org/wiki/Emulator).
That is *exactly* what Wine does.
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