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Parameters are defined in a function's declaration as part of the way the function specifies what values it expects to receive when called. This declaration allows the function to operate on the provided inputs, which are named in the parameter list.

When defining a function, you include the parameter names within parentheses right after the function name. Each parameter represents a variable that can hold a value passed to the function when it is invoked. This definition is crucial, as it clearly establishes the expected inputs for the function, thereby enabling more understandable and maintainable code.

In contrast, defining parameters within the function's body is incorrect because parameters are intended to be defined before the function execution, not during it. Global variables are accessible throughout the entire program but do not relate directly to the conceptualization of parameters as part of a function's interface. Parameters are distinct from what occurs at the invocation of the function, which is when actual values are supplied, not when they are defined.