Danc of Lost Garden has a lengthy post up on the localisation process, most importantly the 'translation game,' and how to use game design and techniques to more easily export games to foreign places:
Instead of hiring expensive middlemen, we harness the volunteer efforts of our passionate players. Instead of managing the process manually, we create an automated system of empowering tools and reward systems that encourage players to do the right thing. Above all, we make the process repeatable so that we can run it over and over again at almost zero incremental cost. We are building an engine whose mechanical structure is derived from the physics of human psychology and whose brightly burning fuel is a steady stream of fun seeking players.
It's a lengthy essay and delves into the ins and outs of such a system, including the inevitable downsides (translation done on a casual whim is frequently spotty at best), but really interesting. As we get more and more of a back and forth flow of games that need translation, what is the best option for smaller companies that may not want to eat up a large chunk of the profits with translation and localisation services?
The Translation Game [Lost Garden]