In business, glocalization usually refers to a sort of internationalization where a global product is adapted to fit the local norms of a particular region. Yet, in the social sciences, the term is often used to describe an active process where there's an ongoing negotiation between the local and the global (not simply a directed settling point). In other words, there is a global influence that is altered by local culture and re-inserted into the global in a constant cycle. Think of it as a complex tango with information constantly flowing between the global and the local, altered at each junction.
...Web2.0 is about glocalization, it is about making global information available to local social contexts and giving people the flexibility to find, organize, share and create information in a locally meaningful fashion that is globally accessible. Technology and experience are both critical factors in this process, but they themselves are not Web2.0. Web2.0 is a structural shift in information flow. It is not simply about global->local or 1->many; it is about a constantly shifting, multi-directional complex flow of information with the information evolving as it flows. It is about new network structures that emerge out of global and local structures."
Via Peter Meholz's new Web 2.0 blog, Designing for the Sandbox.