The correct answer reflects the principle of data sovereignty, which dictates that data is subject to the laws and governance structures of the nation in which it is stored. Even if the company is not based in that nation, it must comply with those local laws. Companies often have to navigate complex legal environments, ensuring they comply with the laws in all the territories they operate in, including where their data resides.
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What is data sovereignty?
Why is compliance with local laws important?
How can companies ensure compliance with diverse laws?