A while ago, H&M ran a set of ads. Some savvy bloggers in the Middle East (Dubai specifically) realized that the ads they got were different from the ads that were running in other Western countries. Check out the side by side comparisons. The ones that are less clothed are the Western ones.
Personally, I see nothing wrong with these companies doing such. It makes sense – they want to try and secure the market over there and the market is more conservative, so it makes sense to do this. Some of the photoshopping looks a little weird (like the sleeve one) but it probably saved them a lot of money instead of taking two separate photoshoots. In fact, I wish the covered up versions of the ads were the ones we got, because the amount of skin people can show in advertising these days just seems to be excessive.
Should companies change their advertising for different countries? Answer your thoughts below in the comments!