Magnetism
A very common source of magnetic field found in nature is a dipole, with a "South pole" and a "North pole", terms dating back to the use of magnets as compasses, interacting with the Earth's magnetic field to indicate North and South on the globe. Since opposite ends of magnets are attracted, the north pole of a magnet is attracted to the south pole of another magnet. The Earth's North Magnetic Pole (currently in the Arctic Ocean, north of Canada) is physically a south pole, as it attracts the north pole of a compass.
A magnetic field contains energy, and physical systems move toward configurations with lower energy. When diamagnetic material is placed in a magnetic field, a "magnetic dipole" tends to align itself in opposed polarity to that field, thereby lowering the net field strength. When ferromagnetic material is placed within a magnetic field, the magnetic dipoles align to the applied field, thus expanding the domain walls of the magnetic domains.
Excitation (magnetic)
An electric generator or electric motor consists of a rotor spinning in a magnetic field. The magnetic field may be produced by permanent magnets or by field coils. In the case of a machine with field coils, a current must flow in the coils to generate the field, otherwise no power is transferred to or from the rotor. The process of generating a magnetic field by means of an electric current is called excitation. Field coils yield the most flexible form of magnetic flux regulation and de-regulation, but at the expense of a flow of electric current. Hybrid topologies exists, which encorporate both permanent magnets and field coils in the same configuration. The flexible excitation of a rotating electrical machine is employed by either brushless excitation techniques or by the injection of current by carbon brushes (static excitation).