International hosting works well for smaller websites, and local hosting is better for larger websites and websites that want a better rating on local search engines.

Local hosting is generally more costly because a client is likely to pay for bandwidth. Bandwidth in some countries is not as costly or sometimes not even a factor for costs, therefore - hosting a website internationally can be less costly.

Websites hosted on internationals servers are likely to run slower than local hosting solutions as the information literally has to leave the country and come back to the user trying to view it.