External combustion engines are those in which combustion takes place outside the engine whereas in internal combustion engines, combustion takes place within the engine.
For example:
In a steam engine or steam turbine, the heat generated due to the combustion of fuel is employed to generate high pressure steam which is used s a working fluid in a reciprocating engine or a turbine.
In case of gasoline or diesel engines, the product of combustion generated by combustion of fuel and air within the cylinder form the working fluid.
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