Localization settings can be set on Database level, Instance level (imagine geographically despersed cluster) , Session level
Environmental variable NLS_LANG allows to override Language settings on a session level.
For example you have an application deployment in Italy, obviously you're expecting data to come in an Italian/European format here is the settings for your Unix box:
NLS_LANG=ITALIAN_.WE8MSWIN1252
Database language settings
To find out your setting use this handy query:
select * from nls_database_parameters;
Will you quite a list of information on your settings, such as:
NLS_LANGUAGE ITALIAN
NLS_TERRITORY ITALY
NLS_CURRENCY <euro sign here>
NLS_ISO_CURRENCY ITALY
More information can be found at Oracle:
http://www.oracle.com/technology/tech/globalization/htdocs/nls_lang%20faq.htm#_Toc110410543