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Global varible or Local varibles which is best wrt data memory usage?

Hi , Which is best local or global variables wrt data memory ?I observed that XData size is getting reduced when I am replacing my global variable with local variable.is there any effect on internal data memory if I use local variable instead of global variables?and what about the performance? I am waiting for your valuable suggestions..
With Regards,
Bhaskar Reddy
bhaskar@blazeautomation.com

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