Declaring Parameters in Test Settings

Hi,

Please tell me how declaring the Parameter using
File --->Test Settings -->parameters
differs from declaring the Parameters pertaining to each action using
Edit ---> Action Properties.

The first one (File->Test Settings->Parameters) declares parameters for the "entire test" whereas the second one (Edit->Action Properties) is for an individual action.

[QUOTE=Anshoo_Arora;25268]The first one (File->Test Settings->Parameters) declares parameters for the "entire test" whereas the second one (Edit->Action Properties) is for an individual action.[/QUOTE]



Instead of declaring the parameters in the Action properties,if the parameters for action are also declared in the Test Settings.Will QTP recognise the parameters?