SAP Installation Instances in an international company

Suppose there is an global non-for-profit company whos HQ is in one country and a few branches are in a few different countries.  The comopany may consider installing SAP as its backbone structure.  Two options are considered: (1) single database in structure, housing all the data, or ((ii) separate databases in each countries which will be consolidated for financial reporting purpose.
My question is, which option is more feasible and why? Can anyone shed some light?
Thanks.
green

Thank you for comments.  As I am a novice to SAP, please allow me to post follow up questions.
Does the proposed solution of a single database mean that all the branches in multiple countries post transactions on single SAP and against single database?  Or post transactions on multiple SAP, but against a single database? Can you please elaborate? 
If a single database structure is opted, I presume all master data such as vendors etc are maintained by a centralized Unit in either its HQ or branches/  Or, an the master data can be maintained by each branches in a decentralized manner?
Thank you.
green

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    Disconnected from Oracle Database 10g Enterprise Edition Release 10.2.0.4.0 - 64bit Production
    With the Partitioning, OLAP, Data Mining and Real Application Testing options
    SAPINST: End of output of SQL executing program D:oracleERP102/bin/sqlplus.
    SAPINST found errors.
    SAPINST The current process environment may be found in sapinst_ora_environment.log.
    2009-07-15, 20:09:50 SAPINST ORACLE stop logging
    Best regards,
    João Dimas - Portugal

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