Is happiness internal or external?

Can happiness be influence by your external circumstances or is happiness internal? If happiness is internal, where is it's location? How or can happiness be influenced, externally or is the influence strictly internal?

Happiness is a mental or emotional state of well-being defined by positive or pleasant emotions ranging from contentment to intense joy. A variety of biological, psychological, religious, and philosophical approaches have striven to define  happiness and identify its sources.

'O seekers of happiness, how unhappy you all are!'
This is a quote from an ancient Indian sage named Jabali. I would love to tell you a story of Jabali.
In ancient Indian myhs, it was said that a sage by pure pursuit of spiritual knowledge and ascetic sacrifice of humanly pleasures could conquer heavens. Jabali was a sage with a difference. He was a married man who lived in a small hut in a jungle away from great cities, kings and other sages. He did no rituals, no hymns, no benedictions of the monarchs - he lived a simple and quiet life. But his spiritual height reached heavens and gods were threatened. So they conspired to plot against him.
One day the gods sent Urvashi, the heavenly entertainer to meet him. Urvashi tried to impress him by her feminine beauty and appeal.

'Enjoy it, O mighty sage, because it is only through satisfying your senses you can be happy.' Urvashi said.
'What am I supposed to enjoy?' asked Jabali.
'This' said Urvashi and danced lustfully.
'Ok, take me to the heavens and show me your feminine beauty.' Jabali said.
So in the heavens a grand strip-tease was arranged where Urvashi danced. When she started taking of her robes, other sages covered their eyes and exclaimed, "stop it, it is lustful!' But Jabali sat unmoved encouraging Urvashi to go on.

At last, with the music in a crescendo, Urvashi took off her last piece of cloth and stood naked n front of him.
'Well, take that off please'. Jabali insisted.
There is nothing more to take of they said. But there is. There is that white as alabaster, gleaming thing on her, take that off.
'O mighty sage, that's skin!' lamented the gods.
But where is that feminine beauty then? Beneath that skin? Beneath that muscle, bone? Where?
Jabali left heavens saying : If I have it, I have it. If not, its not there in your skin.

What's your opinion???