We represent domestic and international legal entities with 'Company' records in X3. We use folders for distinguishing Development | Test | Production sets of data.

This is not necessarily a recommendation, it's just what we do. I'll be interested in what others think.

Things to consider:

If there is a buy/sell relationship between multiple legal entities in different regions, a single folder allows you to take advantage of the Sage X3 intercompany features.

Use of multiple ledgers is important when intercompany eliminations and consolidated financials are a requirement.

Sharing products and BPs can be good or bad depending on the current synergy between the companies, regions, etc.

Rumor has it that not all legislations play nicely together.

Multiple instances will likely require multiple Sage X3 licenses which will impact the overall cost of acquisition and maintenance.

There are technical considerations to consider that I will leave to those with more technical knowledge.  You can check out some of the technical discussions happening in this entry https://www.sagecity.com/support_communities/sage_erp_x3/f/sage-x3-general-discussion-forum/129997/best-ways-to-deploy-x3-to-users-based-in-china

Thank you TJunction. 

That confirms our initial thoughts! I really appreciate your input! Thank you!