externalization is an unconscious defense mechanism, where an individual "projects" his own internal characteristics onto the outside world, particularly onto other people.[1] For example, a patient who is overly argumentative might instead perceive others as argumentative and himself as blameless.
Like other defense mechanisms, externalization is a protection against anxiety and is, therefore, part of a normal, healthily-functioning mind. However, if taken to excess it can lead to the development of a neurosis.