External environmental factors that may affect managerial discretion include the stock of firm resources and capabilities at hand and the level of global economic stability.

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External environmental factors typically include elements like market trends, regulatory changes, competition, and economic conditions, rather than internal factors such as the stock of firm resources and capabilities, which are considered internal to the firm. Global economic stability is an external factor, but the stock of firm resources and capabilities is not.

External Environmental Factors That May Affect Managerial Discretion Include the Stock