Legal Definitions - localization doctrine

The localization doctrine is a legal principle that states that a foreign corporation can be subject to the laws of a state if it conducts enough business within that state.

For example, if a company based in Japan sells products in California and has a significant presence in the state, it may be subject to California's laws and regulations.

Another example could be a Canadian company that operates a manufacturing plant in Texas. If the company's activities in Texas are substantial enough, it may be subject to Texas laws and regulations.

The localization doctrine is important because it allows states to regulate foreign corporations that do business within their borders. This helps to ensure that these corporations are held accountable for their actions and comply with local laws and regulations.