What is the proper way to handle this workflow in TFS

Question

A client of mine is using TFS and asks people to operate in this manner:

• The developer in India writes the first draft of code
• The code is published to a workspace (eg 10.1.1.1\TFSName Project:FromIndia Folder:\My.Assembly.Name)
• The code is reviewed by an internal employee
• To help ensure a full comprehension of code, the code is copied to a new workspace (eg 10.1.1.1\TFSName Project:InternalCode Folder:\My.Renamed.Assembly

Now the client wants to allow India to reference the code located in 10.1.1.1\TFSName InternalCode for support purposes. They also want them to propose changes to the running {production} code.

Is this an effective use of TFS server? What is a better approach?