Localization is the process of adapting a product or content to a specific locale or market.
Translation is only one of several elements of the localization process.
In addition to translation, the localization process may also include:
Adapting graphics to target markets
Modifying content to suit the tastes and consumption habits of target markets
Adapting design and layout to properly display translated text
Converting to local requirements (such as currencies and units of measure)
Using proper local formats for dates, addresses, and phone numbers
Addressing local regulations and legal requirements
The aim of localization is to give a product the look and feel of having been created for the target market and to avoid or minimize local sensitivities.