This Thesis presents a fully microscopic theory to describe terahertz (THz)-induced processes in optically-excited semiconductors. The formation process of excitons and other quasi-particles after optical excitation has been studied in great detail for a variety of conditions. Here, the formation process is not modelled but a realistic initial many-body state is assumed. In particular, the linear THz response is reviewed and it is demonstrated that correlated quasi-particles such as excitons and plasmons can be unambiguously detected via THz spectroscopy. The focus of the investigations, however, is on situations where the optically-excited many-body state is excited by intense THz fields. While weak pulses detect the many-body state, strong THz pulses control and manipulate the quasi-particles in a way that is not accessible via conventional techniques. The nonlinear THz dynamics of exciton populations is especially interesting because similarities and differences to optics with atomic systems can be studied