~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Yes, from my experience, most companies will first consider their own interns for fulltime hiring needs. If that doesn't fullfill their needs, they hire for university recruitings. This may have been another reason why it is hard to find an entry level fulltim job these days in university recruiting for people without internship connections.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Not necessarily. When they are planning to cut expense and lay off people. Then hiring executives from outside is a good choice.