It can be either. Inside or out. Inside examples are Case / power supply, Motherboard, CPU, Memory, Optical drive, Hard drive... outside examples are mouse, keyboard, monitor, etc...
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Computer hardware is the components that make up a computer. Computer architecture is the model used to combine the Hardware into a working unit.
A Network Interface Card (NIC) is a hardware device that handles an interface to a computer network and allows a network-capable device to access that network. It is a computer hardware component designed to allow computers to communicate over a computer network.
The physical components that make ups computer system are the Central Processing Unit (CPU), the Hard Drive (data storage), the Motherboard, the Optical/Disc drives (CD readers and the like), the Power Supply Unit (PSU), the external parts (the case, speakers, monitor, mouse, keyboard, etc.) and numerous fans and cables inside the computer.
In computer hardware, "cards" usually refers to the different silicon boards that make up the hardware of a computer.
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