aakk9999 - 7:53 am on Sep 5, 2013 (gmt 0)
But this strategy is also 2 steps, so I wonder if it's equally slow?
As I said I am not an expert here, but I think 2-step will be slower as you have an extra step (#1) whereas #2 has to be executed one way or the other.
If you want to host in the local country, why don't you do what phranque suggested and go via subdomain option?
If you want folder option, it should resolve straight away to server where the main domain is hosted.
You can geo-target both, subdomains and folder-based solution.