Hi,
Yes, Godaddy register your host header with the Domain Name System (DNS). Since Godady.com told you the account is setup for local hosting , this means not all of the client from the internet can reached the DNS. Hence, the friendly host header will not Resolve to your server’s IP address .
Actually, this issue is your network related. You need to contact with Godaddy to find out the effective region of your domain name.