2. Some countries have laws that requires software to be translated in the native language where it is used, which means updating the software to fit the laws of the land where it is being used. This process is called country localization. Microsoft Dynamics AX, for example, is required to format financial reporting tools and tax regulations to the country, as well as translate the software language for countries such as Saudi Arabia, Australia, Mexico, Iceland, German, Thailand, Sweden, Spain and many others (Encore Business, 2011).