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By using cross network cable (much cheaper) or a switch hub (minimum 8 ports, cost few hundred or less). Both laptop and PC must have network interface card (NIC). Set the IP address, computer name and workgroup.
If you have a broadband connection it would be worth getting a Linksys or D-Link Cable DSl router, that way you get a Internet Connection for all your computers plus you won’t have to buy a switch, these are usually cheap. Also you can set up DHCP so you don’t have to mess around with IP addresses.