Question : Is there a way to create links in MS Word that link to other word documents in the same folder?

I know you can just create a hyperlink and then specify what file the link should open.  

For example:

If I am making a document called statistics.doc which I have saved in c:\windows\default\

and inside that document I create a link called "table" and then hyperlink it to c:/documents/downloads/table.doc

Then it will always open that document as long as it remains in that folder - what I am asking is I want MS Word to look for "table.doc" from the folder of the document that the link is located in (in this case it would be the location of statistics.doc - c:\windows\default) - or even better, if it just finds "table.doc" by searching your entire computer.

Answer : Is there a way to create links in MS Word that link to other word documents in the same folder?

You can insert a word document into another word document as either a hyperlink, a file or an object.

Select "Insert" on the ribbon bar. Then select hyperlink, a file or an object
The hyperlink will open the new document when clicked on.

The file is just like cut and paste. the entire document will load into the new document.

The Object will insert an icon link to the file or the contents of the file within the document.