JSON allows objects and arrays to be nested within each other to represent complex data relationships. This hierarchical structure makes JSON suitable for representing real-world systems such as orders, databases, or application configurations.

Example: Nested JSON

{
  "order": {
    "id": 1001,
    "customer": "John Doe",
    "items": [
      { "product": "Book", "price": 20 },
      { "product": "Pen", "price": 5 }
    ]
  }
}

This example represents an order containing multiple purchased items.