I have a couple of questions though.
1- Do we have to place a .vimrc in each folder for projects we need specific settings for? In your example, it seems that the code is just part of the global .vimrc.
2- When you say that it will overwrite the global .vimrc, will the other project specific .vimrcs completely overwrite, or will it only take the new settings into account?
2 - Vim will load 2 files for configuration. The global `.vimrc` and the one in the directory you are in, eg. often the root directory of your projet. The latter being prior.