Concrete example:
I need the HttpServlet class definitions in a project. These class definitions are normally in a jar in the appserver (for example, servlet.jar in Tomcat4). Rather than copy servlet.jar into the project, I make an external reference. That way I don't have to copy servlet.jar to each webapp project. This is espeically important when working with appservers who keep their
servlet classes in some huge jar that changes often.
Additionally, I set the servlet jar reference in an environment variable. This way, no absolute paths exist that will break when I come back in a year or 2 or install the project on someone else's machine.