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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.
adjective. 1  Relating to, existing on, or connected with the outside or an outer part; exterior. 2  Suitable for application to the outside: external paints. 3  Existing independently of the mind. 4  Acting or coming from the outside: external pressures.