They correct it to make sense, but its hard to draw a line for when this stuff still makes sense and when it starts breaking the suspension of disbelief. It doesnt even have to be different language. All american group in america has sentence "His english is pretty good for a foreigner". What do you do if you dub the movie? Do you keep the English, despite they all obviously speaking in the dubbed language, or do you change it, but those making a strange situation when company of Americans are talking about speaking completely foreign language in their country?

There is a scene in Saving Private Ryan where two of the characters speak Czech. Because I saw the movie dubbed in Czech as a teenager, I had no idea, because they changed their language to something else (honestly cant even remember what language it was).