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Reading Comprehension: Data Localization

Read the technical passage and answer the questions (23-30)

[P1] Data localization, sometimes conflated with data residency, mandates that personal records tied to a country be first collected, processed, and stored within its borders before any outbound transfer occurs. Such transfers, if permitted, typically follow compliance steps – notice, explicit consent, and disclosure of use. The principle is grounded in data sovereignty: data is governed by the laws of the jurisdiction where it is gathered...

[P2] Governments and enterprises advance localization for several intertwined reasons. It is framed as a bulwark for security, keeping sensitive assets on home soil. It anchors privacy under specific regimes (for instance, GDPR), reassures national sovereignty over citizens’ information, and can catalyze domestic jobs by compelling in-country infrastructure. Proponents also cite performance: services may respond faster when data sits nearer to users, reducing latency...

[P3] Localization unfolds through on-premises facilities, sovereign-region clouds, and carefully choreographed transfers and processing. Under certain regimes, foreign copies relating to local residents must be deleted only after deletion has occurred on systems inside the data subject’s country. In practice, they may sit in local and foreign environments concurrently until compliance steps are satisfied...

[P4] The calculus is double-edged. Security, privacy alignment, local job creation, and reduced latency represent tangible dividends; yet costs balloon with duplicate data centers, legal complexity, and operational overhead. Access can narrow across borders, interoperability may fray, and trade can be hampered when vendors cannot freely move information...