1. Set global policies apply by calling setMode after creating the domain object but before adding it. So maybe between these two lines in your code:
call setMode in here --->
2. To set the global response in the local policy get the global response in your code instead of getting a local response. If you need both responses then you need to create a response group and link the response group to the policy.
Please see the sample PolicyApiSample.java that is included with the SDK.