In this paper we show that the Bethe ansatz integrable theories for a magne
tic impurity embedded in the correlated electron host correspond to the imp
urity which carries both spin and change internal degrees of freedom. There
fore the magnetic impurity necessarily reveals either nonmagnetic behavior,
the Kondo-like magnetic regime, or the mixed valence regime, depending on
the values of the external magnetic field and the applied voltage, which co
ntrol the band filling and the magnetization of the correlated-electron hos
t. It is shown that several previously published papers contain invalid sta
tements that the integrability demands only the Kondo exchange coupling of
the magnetic impurity to the correlated host together with the action of th
e "fine-tuned'' scalar static potential at the impurity site. We prove that
instead of that static potential the integrability implies the dynamic sca
lar interaction of the impurity in the charge sector, too, which causes the
valence of the impurity to depend on the external parameters and the param
eters of the impurity-host coupling. We show how in the Bethe ansatz framew
ork the effects of the dynamic impurity, external boundary potentials, appl
ied to the edges of the open chain, and the effects of the free edges of th
e chain themselves are clearly separated. The impurity valence, magnetizati
on, susceptibility, and the mesoscopic effects are calculated as functions
of the impurity-host coupling, spin of the impurity, external magnetic fiel
d, applied voltage, and temperature for several one-dimensional exactly sol
vable models of highly correlated electrons. Limitations of the Bethe ansat
z approach are discussed. [S0163-1829(99)05046-8].