Internal Sorting:

In internal sorting the whole data is loaded into memory while sorting is in pro
gress
External Sorting:
In external sorting data is stored outside memory( i.e disk) and loaded into Ram
in small chunks. External sorting is usually applied in case when data cannot f
it into memory entirely.
Merge sort is an example of external sorting algorithm.
Bubble, Selection, Insertion, Quick, Heap are examples of internal sorting algor
ithms.