Lua files and objects

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Hello

I'm a programmer with a couple of years C# and JavaScript experience and I'm wondering how to perceive the lua environment in an object oriented context, in ESO.
I'm talking about classes, objects and locals.

I can't get my head around this: a local function in a lua file, is local in that file and can not be used in another file. Does this mean every file is an object by itself? A function maybe? What about my lua files where I define a class? Those locals are, I hope, local for an instance of that class?

Once I thought all lua files are just a big, sequential script, where you can create objects/function/constructors like you would do in javascript, but then again, the locals, why are they still "local" then.

Hopefully, my queston is clear: I can't seem to relate or project this lua environment on my C# or javascript experiences.

Any help or point of view would be appreciated