Using the SharePoint Admin Center

To configure external sharing settings for the entire tenant, go to the Sharing page of the SharePoint admin center. The External sharing section on this page contains options that let you control the tenant-wide sharing level in SharePoint:
Only people in your organization: Turn off external sharing and limit sharing to internal users only. This is the default setting for communication sites and classic sites in SharePoint. As a security best practice, it’s recommended that you turn off tenant-wide external sharing by selecting this option.
Existing guests: Permit sharing with external users who have already been added to your Azure AD Existing guests may have joined your Azure AD by accepting a share invitation in the past or by being added as guest users by an administrator in the Azure portal. This option requires guests to authenticate into Microsoft 365 with valid credentials before they can access shared assets.
New and existing guests: Grant site owners and users full control permission to share sites with external users. Site users can also share files and folders to collaborate with external users.

More Info: comptia a+ description

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