NPM is the default package manager for Node.js, allowing developers to share and manage project dependencies. # Global versus Local Packages Local packages are project-specific, global packages are system-wide. - Local packages are installed in the `node_modules` folder of the directory where you ran `npm install <package-name>`. - Prefer to install packages locally. - Global packages are all put in a single place in your system, regardless of where you run `npm install -g <package-name>`. - Install packages globally when it provides an command-line tool or utility that's reused across projects. (e.g. create-react-app, nodemon)