Multiple CLAUDE.md files?

If I have CLAUDE.md file in a global folder, e.g., a folder that contains all my Claude Code projects, then create another CLAUDE.md file in a project specific folder, does one supercede the other?

Is it even necessary to have project specific file? When I watch Nate's videos, he always has a CLAUDE.md file in a project folder.

If multiple CLAUDE.md files are needed, then how do you keep them separate and maintain them?

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