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At present, Google has a range of country specific URLs. When you visit one you get the option of searching "The Web" or the country you're in (e.g. "pages from the U.K.). I can imagine Google having one base site, with the option of a local search or a full web search. When local search is selected it would work out where ou are from your IP address and give you suitable results.
Try going to Wolfram Alpha and searching for "Where am I?"
Content Specific Results
This essentially means understanding what you've searched for and tailoring results it shows you. To a certain extent this already happens, but it could go much further. At present when you search for a city, Google recognises that it's a place and offers you small map. When the map is clicked it takes you to a google maps page. But it could do so much more with the knowledge you've search for a location. It could offer an embedded, workable map, weather forecasts, upcoming events… and so on.
Another example would be when you search for a film title it could offer you an embedded YouTube trailer, local cinema listings (with directions), product result results for DVDs and downloads.