Relative vs. absolute links
Links to external workbooks are created in a relative manner whenever possible. This means that the full path to the source data file is not recorded, but rather the portion of the path as it relates to the linked workbook. With this method, you can move the workbooks without breaking the links between them. The links remain intact, however, only if the workbooks remain in the same location relative to each other. For example, if the linked file is C:\Mydir\Linked.xls and the source data file is C:\Mydir\Files\Source.xls, you can move the files to the D drive as long as the source file is still located in a subfolder called "files".
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