External references in models
An external reference is a reference from one model file to an
object in another model file.
External references represent objects that exist outside a model file. Typically, external references are resolved automatically without the user knowing.
If you change an external reference and initiate a merge, a difference is registered against the external reference, not against the referenced object.
Example
The following example shows what happens when you change an external reference and initiate a merge.
Model file
X has an external reference to an object in model file Y.
In this example, if you changed the object in model file Y without changing the external reference from model file X, a difference would not be generated. The state of a referenced object outside a model file is not relevant during a merge.