People always like products better if they are locally-produced; however, local production sells even better to tourists, since everyone likes to have something unique and indigenous to a local. People buy far more branded bottle-openers from gas stations than the plain ones sold in Wal-Mart. Never underestimate the profitability of a souvenir. (Note that these branded items might not even be locally produced! For tourists, it's more the buying than the actual "Made Here" cred.)
You have to "glocalise" products in order to appeal to the different contexts and culture of your varying markets. The biggest example of this is of course McDonalds, who has different versions of its food in every nation depending on the varying tastes and dietary aspects of the country and culture where it is presented. This means you can have a McLlajua burger in Bolivia, which involves a burger with the very spicy sauce that Bolivians eat their food with. This is one example of many.
It is essential to vary the attributes of products from country to country to increase sales keeping in mind differing preferences of the market that include cultural, religious and financial preferences among many others. For example, MacDonald's has a very strict control on the products it sells around the World to ensure that they taste almost the same in any outlet. But it has had to make many changes in its menu in many nations where people do not eat the meat of animals like pigs and cows. If the company had not opted to make changes and continued to sell pork and beef everywhere it would not have been able to operate in countries with a large Muslim and Hindu population.
Sometimes it makes sense to do this; sometimes it does not. Sometimes people want to know that they are getting exactly the same experience from a product as anyone anywhere. This will be especially the case if the product has a lot of prestige associated with its brand name.
Depending on the product, you may need to vary its attributes in order to produce it for a price that another market can afford. In general, the citizens of wealthier nations want the best that money can buy and what they can afford, and while that sentiment is true around the world, if a citizen of poorer nation wants something, it has to be made at a price for which he is able to buy it. That could mean less quality materials or less features and details.
Sometimes not changing in accordance with local mores and culture could be disastrous. Some societies have strong taboos against eating certain foods, for example, and restaurants that don't honor these customs could find themselves in the center of a major controversy. But more often than not, as others have pointed out, it is just a matter of catering to local tastes.
The key word to answer this question is: "custom made." When a product is custom made people like is much better. Why? It really fits their tastes. This is important in a world that is vast. For example, McDonald's is a great company and if you travel the world, you will realize that the menus are slightly different. For example, in China they serve corn and congee and a few other things. Why? They are varying their menu to cater to different tastes.
This is because people in different countries will have different tastes. If you make the exact same product in different countries, you might lose market share because you fail to account for these differences. So long as people in different countries have different tastes, it is necessary to vary your product.