Local and world positions?

I’m still having trouble understanding local and world positions in Garry’s mod.
I know it might sound a little bit dumb, but could someone explain the difference between these two?

World positions are a vector representing the distance along each of the three axes (x, y and z) from the worlds origin.

In some situations, it can be more useful to get an entities position relative to another point, that’s the “general” meaning of a local vector.

In terms of GMod they have a more specific usage, focused around individual entities’ origins. You can convert between local and world co-ordinates with entity:LocalToWorld(vector) and entity:WorldToLocal(vector)

Hmm… Okay, now i understood it.