For internationalization, android looks in different directories for the appropriate local as determined by your selection for the phone. For instance, you should see something like this:
./explorer/src/main/res/values-uk/strings.xml
./explorer/src/main/res/values-tr/strings.xml
./explorer/src/main/res/values-ru/strings.xml
./explorer/src/main/res/values-pl/strings.xml
./explorer/src/main/res/values-de/strings.xml
./explorer/src/main/res/values-ko/strings.xml
./explorer/src/main/res/values-sv/strings.xml
...
Where the translated strings are in the values-../strings as determined by the res/values/strings.xml.
In my case, res/values/strings.xml has an entry:
<string name="createnewfolder">Create new folder</string>
which is translated in values-uk/strings.xml as
<string name="createnewfolder">Нова папка</string>
You might find Localizing with Resources useful.