The correct answer to this question is outside. A dog may have hair in their ear or nose, but the most visible hair will be on the outside of their bodies. There are many dogs known for their hair, for both good and bad reasons. A good reason would be how long, fluffy, and warm the hair is.
Dogs with this type of hair include Shi Tzu, Pomeranian, Chow Chow, Bearded Collie, and Bichon Frises. A bad reason would be how much a dog sheds, getting hair all over the home and car. Though all dogs shed, some shed tremendously, like Siberian Huskies.