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Given some notion of equivalence (e.g., homeomorphism, diffeomorphism, isometry) between topological spaces, two spaces are locally equivalent if every point of the first space has a neighborhood which is equivalent to a neighborhood of the second space. For instance, the circle and the line are very different objects. One cannot stretch the circle to look like the line, nor compress the line to fit on the circle without gaps or overlaps. However, a small piece of the circle can be stretched and flattened out to look like a small piece of the line. For this reason, one may say that the circle and the line are locally equivalent. Similarly, the sphere and the plane are locally equivalent. A small enough observer standing on the surface of a sphere (e.g., a person and the Earth) would find it indistinguishable from a plane.
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