product export and import using xml

When you’re exporting from a localhost installation, the other installation cannot import images because it technically needs to be ‘online’ for the new installation to download the images off the older one.

The easiest thing to do would be to migrate the old site to an online installation. You can read about how to move WordPress in the Codex. After it’s online, the new localhost installation and other installations will be able to properly import the older site including its images.