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The term 'cross-border data transfer' specifically refers to the transfer of personal data from one country's jurisdiction to another. This concept is essential in privacy law and data protection because different countries have varying regulations regarding how personal data must be handled, stored, and transferred. The movement of data across international borders raises important legal considerations and potential compliance issues, as organizations must navigate the differing standards of data protection in each jurisdiction.

Understanding cross-border data transfer is crucial for businesses operating in a global environment, as they need to ensure that they comply with both domestic and foreign data protection laws when moving personal data across national boundaries. For instance, the General Data Protection Regulation (GDPR) in the EU imposes strict conditions on such transfers to ensure that the data continues to receive adequate protection even when it is moved outside of the EU.

The other options provided do not accurately capture the essence of cross-border data transfer. Transferring data within the same country would not constitute a cross-border scenario, processing data in a central location does not inherently imply a transfer between jurisdictions, and sharing data with third-party vendors can occur domestically or internationally but does not define the concept of cross-border transfer itself.