I'm not so sure about how much local content it would have. I could see MDD licensing a FAL at British Aerospace though to actually build the aircraft for the RN. Besides, by 1992, the F404 engine had been uprated with 10% more thrust over the original version.I suspect the most likely aircraft would be the F/A-18D with a lot of local content, probably a scaled up derivative of the three shaft RB199 engine, which would likely be very similar to the EJ200, which would significantly improve the fuel efficiency and thrust to weight ratio of the engine and offset the extra weight of the backseater.
I highly doubt British Aerospace would have any success selling it to foreign customers though. Most countries would just buy stock Hornets directly from MDD like they did IOTL. Hell, any production license would most likely prohibit BA from selling the aircraft abroad. Now, if it was a clean sheet design incorporating a few features other European manufacturers, then you could see the UK grabbing some orders that in OTL went to MDD for Hornets.An 18-K in other words but hopefully one with more markets than the Brit Phantoms ever had.