Actually there are plenty of resources answering your first two questions, for example Spring Documentation explains what local and global transaction is and depicts their differences in chapter 9.2 Motivation. In few words:
Global Transaction is an application server managed transaction, allowing to work with different transactional resources (this might be two different database, database and message queue, etc)
Local Transaction is resource specific transaction (for example Oracle Transactions) and application server has nothing to do with them. (the same chapter explains the pros and cons of each of them very well and much better then I could explain, so I suggest you to give a closer look)