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In this tutorial, the presenter demonstrates how to create a dropdown in Excel that links to external URLs. Initially, they explain that typing a URL directly into a cell in Excel automatically generates a hyperlink, which can be clicked to open the corresponding web page in the default browser. However, the tutorial focuses on an alternative method to create a more compact dropdown list of hyperlinks, allowing users to select a link without occupying multiple cells. To accomplish this, a source list of URLs is required, which can be organized and hidden to maintain a clean interface.