(I will answer this question with regards to the fictional organisation, The Imperial, for which I have made up case study information for the relevance of answering a IB Business Management question)
Internal recruitment can be defined as the act of hiring people to become employees for The Imperial through finding people suited for the job who already currently are employeed by the business, this may be done through promotions for example from someone who is already on the organisational structure of The Imperial. For instance, promoting Jenny (an assembly line worker) to become the supervisor of the whole assembly line would be an example of internal recruitment.
On the other hand, external recruitment would be defined as the act of hiring people to become employees for The Imperial through finding suitable candidates from outside the organisation. For example, in this situation, The Imperial may place an advertisement for an open job in the newspaper or online and accept applications from people currently not employed by The Imperial. For instance, hiring Jack (who is currently self-employed) to be the new supervisor of the assembly line would be an example of external recuitment. The main differnece between internal and external recruitment is where the new hires are coming from, whether that from within the organisation or from outside it.