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Hive >> mail # user >> Managed vs external tables in hive

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Managed vs external tables in hive
I am pretty new to hive and was trying to clearly understand the difference
between a managed and an external table.

As my current understanding stands, a managed table is a table whose data
is completely owned by hive whereas an external table is usually created to
have a hive frontend for the data managed in external systems.I would
suppose this would mean that a query on an external table goes out to fetch
data from the given external table, deserialize according to the
given/suitable SerDe and then show the output of the query in hive format.

So does this mean that cost of using external tables is much higher than
the native ones? Or is there some caching that comes into play that I am
not seeing right now.

Thanks for the help.