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The network layer handles how data is addressed and routed between different networks. It uses logical addresses, like IP addresses, to identify devices across multiple networks and makes routing decisions to determine the best path from source to destination, potentially through several hops and routers. In contrast, the Data Link Layer deals with local delivery on a single network segment using physical addresses (MAC addresses), and the Physical Layer handles the actual electrical signaling. The Transport Layer focuses on end-to-end delivery and reliability, not inter-network path selection. This combination—logical addressing and routing across networks—belongs to the network layer.