Global variables are globaly defined, which means you don't have to redefine them again, in no function.
Once defined they are accessable everywhere in all the code.
Local variables, have to be redefined in every function and will be deleted from the memory once the function has ended.
This example will explain:
code:
var GlobalVariable;
function Blah(ParsedVariable1)
{
var LocalVariable = "value";
GlobalVariable = "value too";
Blah2(ParsedVariable1);
}
function Blah2(ParsedVariable2)
{
//GlobalVariable is still "value too",
//LocalVariable isn't accessible (but exists in the memory, since Blah isn't yet ended, which will end as soo as Blah2 end, because i called Blah2 inside Blah, as Blah will then wait for Blah2 to end)
//ParsedVariable2 is the same as ParsedVariable1
//ParsedVariable isn't accessible (see LocalVariable)
}
Hope this helps