The necktie in most dictionaries is described as, "a large band of fabric worn around the neck under the collar and tied in front with the ends hanging down as a decoration", although there is a much deeper history.

The purpose of a tie is for style and status, nothing really more, although some may say it can be used to wipe the sweat off your brow or to keep you warm (ie. in Northern Europe it was originally used as a neck warmer) during the cold winter months, it really shows that you came prepared, and you mean business. Although, I do not always believe a tie means business, it means you wanted to wear something in style. A tie is also a phallic symbol, and to some it might mean you're a man, but not to all, as some women have chosen to wear ties on some occasions. When someone wears a tie, they look more professional, and it tells the people in the meeting that they came prepared and took the time to dress up. I see a man wearing a tie as equivalent to a woman putting on ear rings, and nowadays it's seen as more of an accessory to some than a necessity.

Tradition and History:

It has been a tradition for men to tie something around their necks.
Ties date back to ancient Egypt. The rectangular piece of cloth that was tied and hung down till the shoulders was a very important part of an Egyptian’s clothing because it was showing his social status.

In China, all the statues around the grave of Emperor Shi Huang Ti bear a piece of cloth around their necks, which is considered an ancestor of the modern necktie. In art from the Roman Empire, men are also depicted bearing neckwear that much resembles the contemporary necktie.

Croatta

The real expansion of neckties in Europe happened in 17th century over 350 years ago. Ties were started as a trend in the Adriatic coast, and has remained as a formal attire ever since. Over 600 million people now wear the ubiquitous symbol of Croatia around their necks, close to their hearts.

The necktie became a true mania when Louis XIV noted the band of fabric that Croatian soldiers were wearing around their necks . The etymological root of the word "necktie" comes from there ("Cravatte" - French) - from the Croatian word "Croatta".

See the picture with and without a tie. Which do you believe is more imposing? Do you feel differently about someone when they wear a tie, or is it the jacket and tie combination that really means something? The guy with the tie on may seem more casual than the guy without the time, because he is lacking a jacket. I believe it's not just the tie that makes a difference, yet it's the jacket and tie combination. However, I truly do not believe a tie will make or break a business deal, as there is much more to a person coming prepared than coming dressed up nicely. I've seen people dressed in ties who were not prepared, and those who were completely prepared not dressed in ties. Some people feel when they wear a tie that they are more professional, or ready to take on a bigger challenge, etc. but this is not for everyone. Some businesses believe that a tie makes their employees work harder because they put more effort into their dress, yet this is not always true. If all the companies who required ties to be worn on a daily basis were so great to their employees, then wouldn't these be the companies to invest in, or wouldn't these companies be the ones with booming markets. On the contrary, some of the companies who required neckties to be worn by their employees have not been the most profitable of businesses.
Source(s):
http://www.shop-usa.info/TIE_HISTORY/tie_history.html
http://www.croata.hr/homeland/index.php
http://en.wikipedia.org/wiki/Necktie
http://www.flatrock.org.nz/topics/intellect_and_entertain/a_loosening_of_ti...

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The earliest historical example is in ancient Egypt. The rectangular piece of cloth that was tied and hung down till the shoulders was a very important part of an Egyptian’s clothing because it was showing his social status.

In China, all the statues around the grave of Emperor Shi Huang Ti bear a piece of cloth around their necks, which is considered an ancestor of the modern necktie.

In art from the Roman Empire, men are also depicted bearing neckwear that much resembles the contemporary necktie.

In 1660, in celebration of its hard-fought victory over the Ottoman Empire , a crack regiment from Croatia (then part of the Austro-Hungarian Empire), visited Paris. There, the soldiers were presented as glorious heroes to Louis XIV, a monarch well known for his eye toward personal adornment. It so happened that the officers of this regiment were wearing brightly colored handkerchiefs fashioned of silk around their necks. These neck cloths, which probably descended from the Roman fascalia worn by orators to warm the vocal chords, struck the fancy of the king, and he soon made them an insignia of royalty as he created a regiment of Royal Cravattes. The word "cravat," incidentally, is derived from the word "Croat."

It wasn't long before this new style crossed the channel to England. Soon no gentleman would have considered himself well-dressed without sporting some sort of cloth around his neck--the more decorative, the better. At times, cravats were worn so high that a man could not move his head without turning his whole body.
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Many events in the history of mankind eventually fade into oblivion, but others, leave their indelible marks for the entire world to see. More than 350 years ago, the Croats initiated one such influential occurrence. Although started in the 17th century in a small region on the Adriatic coast, the consequences of this event are still very much evident the world over. 600 million people now wear the ubiquitous symbol of Croatia around their necks, close to their hearts.

Believe it or not Croatia is the mother country of the modern necktie but archaeological evidence of the use of neckties goes back to the Chinese and the Romans almost two millenniums back.

China's First emperor -
The earliest known version of the necktie has been found in the massive mausoleum of China's first emperor, Shih Huang Ti, who was buried in 210 B.C. Desperately afraid of death, the emperor wanted to slaughter an entire to army to accompany him into the next world. His advisers ultimately persuaded him to take life-size replicas of the soldiers instead.

The result is one of the marvels of the ancient world. Unearthed in 1974 near the ancient capital city of Xian, the tomb contained an astonishing 7,500 life-size terracotta replicas of Shih Huang Ti's famed fighting force. Legions of officers, soldiers, archers and horsemen, all carved in meticulous detail, guard the emperor's sarcophagus. The armor, uniforms, hair, and facial expressions of the soldiers are reproduced in exquisite detail. Each figure is different - except in one respect: all wear neck cloths.

An ancient mystery -
Historians say other records indicate the Chinese did not wear ties, so why the emperor's guards wore carefully wrapped silk cloths remains a mystery. Since silk was a great luxury, the cloths could indicate the ultimate honor Shih Huang Ti bestowed on his soldiers; they were trusted enough to guard him until the end of time.

For more on the origin of the neck tie go to
http://www.twilightbridge.com/hobbies/festivals/father/necktie.htm
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