External collaboration settings decide who can invite whom. Cross-tenant access settings go deeper for collaboration with other Microsoft Entra tenants: they control which users and apps can cross the boundary, in which direction, and whether you trust security claims from the other tenant. You manage them under External Identities, Cross-tenant access settings, with default settings that apply to every external Entra tenant and organizational settings that override the defaults for specific tenants you add by domain or tenant ID.
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