what are the economical effects of localisation on an intern

what are the economical effects of localisation on an international (oil) company (ie. transaction cost, shareholders and stockholders aspects...)?

Solution

The localisation of an international oil company can have a lot of effects on the whole where the transaction cost reduces by a considerable extent, the demand also increases with the reduction at the prices on the whole where the share holders get to increase public fund to operate at higher demand and eventually the share value increases and the value of stocks for stock holder decreases due to the decrease in the price on the whole.