If you add a negative keyword to a campaign, it will affect the entire
campaign. If you add a negative keyword to an AdGroup it will only
affect that AdGroup and not every AdGroup in the campaign. This gives
you control over how your negative criteria are scoped.

Finding what negative keywords you want to specify is not something
that can be automated. With the loss of organic referrer parameters on
visitors it has become more of a guess and test operation where you
pretty much just have to think about what a good negative keyword
would be.

The classic example is if you do window washing on hirises, you want a
negative keyword on Microsoft, Windows XP, Windows Vista, Windows 7
because you probably have a broad or phrase match Windows keyword
somewhere in your campaign but you are not targeting these high volume
search terms.

"Also is there a quicker way to make all the negative words exact
match
instead of having to click each one individually to change? "

This sounds like you are talking about the AdWords web interface, this
forum is actually for the AdWords programming API so you may find the
answer you are looking for in the general AdWords forum.

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