Once someone asked "How do you increase the chances of finding a shiny Pokemon?" and there was 2 answers, the best one said Shiny Charm, and the other said only Masuda. And I don't know how Masuda makes the chances higher. Please answer quick.
The games coding recognizes that Pokémon of two different areas are breeding and therefore changes the shiny rate to become higher. The reason this coding was established was to encourage international trade.
The masuda method is a method used to get shinies faster through breeding. In this method, it multiplies the shiny rates. The shiny charm also raises rates for all the ways to get a shiny (Breeding, wild encounter, shiny methods...)
Source- http://bulbapedia.bulbagarden.net/wiki/Masuda_method & Experience