MicroStrategy is an object-oriented application in which objects can be considered as building blocks. These blocks can be reused to build larger blocks, and so on. Also, they can be used to build not only one but several other larger structures, implying that some objects can be shared and reused. In other words, one MicroStrategy Object can be used in multiple other objects at the same time. However in some scenarios, an object can be created inside another one as a local object. This is also referred to as an embedded object and only exists inside the object in which it was created. Therefore, local or embedded objects are not available for use with any other object definition.

In the previous exercise, we created a Report using an existing Filter and an existing Template. These two objects were originally designed and created as external objects that could be reutilized into another larger object's definition. In the following exercises, we will understand the implications of using external objects or local objects when designing applications.