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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.
The house has some external damage. Learner's definition of EXTERNAL. 1 : located, seen, or used on the outside or surface of something. the external features of the building. the external signs of the disease. This medication is intended only for external use. [=for use on the skin]