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Dynamic linking to a library allows you to:
1) replace the library without relinking the complete application (e.g. to fix the bug you mention)
2) (on some systems) share the library's code between several processes instead of having a complete copy in each process's memory space.
If you're more familiar with Windows programming, calling a DLL is an example of dynamic linking.
I've read somewhere a comparison involving books: dynamic linking would be something akin to a reference to another book in a footnote while static linking is like including the complete text in its entirety.
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