In the following code:
var greeting = "hi";
function changeGreeting() {
    if (greeting == "hi") {
        var greeting = "hello";
    }
    alert(greeting);
}
changeGreeting();
...greeting is undefined. However if I remove the var and change changeGreeting() to this:
function changeGreeting() {
    if (greeting == "hi") {
        greeting = "hello";
    }
    alert(greeting);
}
...I get "hello" as expected.
I would never redeclare a variable like this in my code, but why does this happen?
JavaScript variables have function scope. Thus, the very presence of var greeting inside the function will declare a local greeting variable, which will be undefined at the time of its mention in if condition: the global variable will not be visible inside the function, being overshadowed by the local one. Therefore, the if does not happen, the assignment to hello doesn't happen, the variable is still undefined.
In the second example, you're using the global variable throughout, it is not overshadowed by a local variable (because, no var greeting inside the function), and things work as you expect.
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