NLS, National Language Support, is the running of Oracle Applications in one, non-American English language only.
MLS, Multiple Language Support, is the running of Oracle Applications in multiple languages. Note, that unless using UTF8 character set, there will be restrictions on the languages which are compatible dependant upon the character set required.
The difference between NLS and MLS was very important in earlier versions of Applications, as only NLS was supported, except by means of a consultancy solution. However, with newer versions, especially release 11i, MLS is supported for the majority of the product set which makes up Oracle Applications (check the specific documentation for a list of products which have MLS capability).
Release 11.0 only had 5 products which had MLS capability.
Release 10.7, only NLS was supported, except using a consultancy solution.
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