xsl:variable and xsl-param ... local and global perspecitve

Hi,

        The following statment appears in the xslt specs. I want to know
that in the second sentence below, are we talking of 2 different
perspectives when we declare a variable or parameter, or is there a
difference in the their written form in xslt also?
        
  "Note that the xsl:variable and xsl:param elements can act either as
declarations or as instructions. A global variable or parameter is defined
using a declaration; a local variable or parameter using an instruction."

Regards
Manpreet Singh

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