Internal trade refers to the exchange of goods and services within the boundaries of a country, while external trade involves the exchange of goods and services between countries. The following are the differences between internal trade and external trade:

1. Scope and Coverage
Internal trade is limited to the geographic boundaries of a country, while external trade is not limited to any specific geographic area. External trade involves transactions between countries, which may include imports and exports.

2. Legal Regulations
Internal trade is regulated by the laws and regulations of the country concerned, while external trade is regulated by international trade laws and regulations. These laws may include tariffs, quotas, and other trade barriers.

3. Transport Costs
In internal trade, transportation costs are generally lower than in external trade due to shorter distances involved. However, the transportation costs in external trade are higher due to long distances, tariffs, and other trade barriers.

4. Currency Exchange
Internal trade involves transactions in the national currency of the country, while external trade involves transactions in different currencies. This means that the exchange rate may affect external trade.

5. Market Competition
Internal trade involves competition from within the country, while external trade involves competition from foreign countries. This competition may result in the development of new products and services, as well as the need to improve existing ones.

In conclusion, internal trade and external trade are two different concepts that involve different aspects of trade. Understanding the differences between them is essential for businesses that want to engage in international trade.