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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.
A distinction can be made between internal and external validity. These types of validity are relevant to evaluating the validity of a research study / procedure. Internal validity refers to whether the effects observed in a study are due to the manipulation of the independent variable and not some other factor. In-other-words there is a causal relationship between the independent and dependent variable.