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Internal means factors or components within a business that can be controlled and external is the exact opposite. External factors, economy, competitors etc... Internal means something done from the inside and external means the opposite, something done from the outside.
INTERNAL - Inside EXTERNAL - Outside. If you are referring to Marketing Terms, Internal and External has something to do with the SWOT Analysis. The Strength-Weakness-Opportunities-Threats Analysis. Internal has something to do with the Strenghts and Weaknesses that the company has. It means that they can be identified and analyze inside the company. That is the reason they are called Internal Factors. External Opportunities and Threats that are present in the companies in the environment are found on the outside. These are called External Factors.