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This question is about careers.
On a job application, internal refers to a process where someone looks to change positions at the same company. This is for people currently working at the company and applying for a different job at the same company. On an application, they can confirm that they are a current employee looking to move positions.
In many cases, hiring internally can greatly benefit the company. It allows them to save time and money as the hiring process is typically quicker and easier if someone already understands company culture and dynamics. It can also be helpful for the applicant as they are hopefully already happy at the company if they choose to stay.

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