Agree with Andie, probably a slight miscommunication.
They also might saying that you will get more 'seo value' out of local domains which might be true to a point but depends on a number of factors both technical and procedural. There is evidence that stand alone country specific domains give more local 'value' in terms of rankings, but you need to weigh this against the need to build links and gain domain authority for all these separate domains individually rather than leveraging the existing domain authority of the main site which you would be doing if you used sub folders. Gianluca has written a good roundup of the considerations to take into account when looking at this kind of scenario and also includes details on geo-targetting in webmaster tools setup and using the hreflang attribute well worth a look: http://moz.com/blog/international-seo-dropping-the-information-dust