Local keywords are the search terms that include the cities, countries, regions, neighborhoods, boroughs, etc. Local keywords are meant to be more targeted, highly relevant and have better chance to convert. On the contrary, generic or "global" keywords are meant to be widespread and less relevant.
With Local Keyword Tool you can generate a list of local keywords by multiplying keywords with cities, countries, regions, etc. Local Keyword Tool allows you to make a list of local keywords by one easy step. This tool is 100% free for use.
Generic keywords are searchable or identifiable words that have meanings that have a relatively wide scope. Generic keywords are similar to the website or to the service of the business that most commonly used. Generally, these types of keywords have very high search traffic, and as a result are extremely competitive and tend to have a higher cost.
With Local Keyword Tool you can use your list of generic keywords to generate local keyword list and include your generic list by selecting "Include my generic keywords" option.