When you open a data source Word initially looks in the folder for the file?

When you open a data source in Microsoft Word, it first searches the specified folder for the file you intend to use. If the file is found, Word will load the data for further processing or merging into your document. If it's not located in the designated folder, Word may prompt you to browse for the file or indicate that the source cannot be found. This process ensures that the data merging operates smoothly and efficiently.