I agree, people from a local region or at least those originating from that region can always localize a product better than somebody from half way across the world (unless they are really good at soaking up foreign cultures, even there, there are limits)

And this is the reason why, many of the MNCs have, not just business offices but also technical/development offices across the major markets.

Of course, most startup unless they are really innovative and have some inherent advantages, cannot carry out that feat. One very good example that I can think of which has carried out an excellent simultaneous launch across two different markets is Ginzametrics. In my view Ray Grieselhuber having worked in Japan for long must have been a huge factor in his successfully tapping the market there, right from the start.

I have seen the business side of really great HR/PR policies/strategies like encouraging diversity in workforce that is quite common in the big MNCs. That diverse workforce helps a company gain understanding of a global market much better than a homogenous workforce. Also, that diverse workforce can help a company replicate/customize systems in nascent foreign markets much faster.

Hmm...there is something incredibly sexy about a strategy that delivers a double or triple whammy.