Definition

1. Noun:
   • The quality or state of being external or outward: The condition of existing, acting, or originating from the outside.
   • Something that is external: An outward aspect or feature.
   • (Economics) A consequence of an industrial or commercial activity which affects other parties without this being reflected in market prices: A cost or benefit that is not borne by the parties directly involved in a transaction.

Usage Examples

• Noun (General):
  • The externality of the building's design made it blend poorly with the historic neighborhood.
  • Philosophers sometimes debate the externality of the mind versus internal consciousness.
• Noun (Economics):
  • Pollution is a classic example of a negative externality imposed on society by a factory.
  • A well-educated workforce can be a positive externality for a community, benefiting businesses that did not pay for the education.

Advanced Usage

• "Internalizing an externality": An economic process of making a party bear the full cost or benefit of its actions, often through taxes, subsidies, or regulations.
  • A carbon tax aims to internalize the negative externality of greenhouse gas emissions.
• "Network externality": A situation where the value of a product or service increases as more people use it.
  • Social media platforms benefit from strong network externalities.

Variants and Related Words

• External (adj): Belonging to, situated on, or relating to the outside.
  • External factors influenced the decision.
• Externalize (verb): To give external existence or form to; (in economics) to shift a cost to others.
  • The company tried to externalize its waste disposal costs.

Synonyms

• Outwardness: The quality of being directed toward or concerned with the outside.
• Externality (Economics): Spillover effect, third-party effect.

Related Phrases

• "Positive externality": A beneficial effect experienced by unrelated third parties.
  • Beekeeping provides a positive externality for nearby orchards through pollination.
• "Negative externality": A detrimental effect imposed on unrelated third parties.
  • Noise from an airport is a negative externality for local residents.

Noun

1. the quality or state of being outside or directed toward or relating to the outside or exterior
   • the outwardness of the world