Final answer:
Localization in McDonald's expansion refers to adapting to local cultures and preferences.
Step-by-step explanation:
The term "localization" in the context of McDonald's expansion refers to A) Adapting to local cultures and preferences. McDonald's recognizes that different countries and regions have different tastes, preferences, and cultural traditions, so they modify their menu items and restaurant designs to cater to local customers. For example, in India, McDonald's offers vegetarian options like the McAloo Tikki Burger to align with the country's dietary preferences.