Adwords Global Vs. Local Search

I am ranked 1st for a term with a good amount of traffic in which the people searching for the phrase are in India. However I'm not getting any traffic from it. Should I not be going after phrases like this since people aren't searching for it in the U.S. and that is where I live? Are they not showing my result in India?

Should I be only using the local search traffic info or should I use the global?

Should I use exact or phrase match for keyword research, and why?

I personally have an adwords campaign for my gf's dad (first shot into it) and I have him ranked #1 for his keywords and its very profitable, he works in the services industry (i.e painting)

I set it up to only show his ads to computers from the local area, so it removes any possibility of wasted clicks by people looking from interstate areas, I'd look into googles new platform for their places, forget the exact title of it (boom or burst) something like that.

As for keywords I use exact match, however if you're selling something offer keywords that someone would search for when looking to purchase something, such as "best XXXX". Take into consideration different cultures and how people use different words during the information search process variables when looking to purchase something, if its a big information search prior to purchase where many alternatives may be considered you could check out keywords like "Comparison XXXXX".

A lot of it is trial and error, do lots of tracking and changing until you have the right mix in place.