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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.
Definition of internal. 1  1 : existing or situated within the limits or surface of something: such asa (1) : situated near the inside of the body (2) : situated on the side toward the median plane of the bodyb : of, relating to, or occurring on the inside of an organized structure (as a club, company, or state) internal affairs.