Lost in Scams,
As Enchantress said, this is absolutely a scam. This is a global economy. It is not difficult for companies to accept payment from other countries via bank accounts or web based services. Even if services were not readily available, companies still wouldn't rely on some random person they met through email from another country to handle their money--and there are international laws and agreements that would have to be addressed, too.
What your scammer wants to do, as Enchantress pointed out, is send you fake checks or money orders. You will take them to your bank, and they will likely be good enough fakes to fool a teller. The teller will submit them as if they were real. This is where it gets complicated, though. Most people assume that once a bank gives them cash from a deposited check, the check has "cleared". This is actually not true. Banks are required to give the customer cash from a deposit within a certain period of time, whether or not the check has been fully verified. So the bank will give you cash, you will think the check has cleared, and you will send the money to your "boss". Then, anywhere from a few days to several weeks later, you will receive a notice from the bank that the check was no good. You will then be liable for returning the money, paying fees for the fake check, overdraft charges if the money was used in checks you wrote, and possibly facing criminal charges for attempting to pass fraudulent checks. Victims have ended up in jail in some cases.
I'm not sure what country you are in, but here is a link from the US Federal Trade Commission describing how this works. It's pretty similar in other countries.
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre40.shtm Edit to Add:
The best thing to do here is to drop this scammer now. Do not tell him you know he is a scammer, just tell him you are not interested or don't respond at all. He may have your general information--email, address, name, etc. If this is all he has, don't worry too much, just ignore any further attempts at contact, block their phone numbers and email addresses, and move on. Scamming is a business for the scammer--and they expect that some victims won't work out. When they realize there is nothing to be gotten from you, they will move on.
From your initial email, I am assuming you have not given the scammer any significant information at this point. If this is not true (i.e. you have given them social security number, drivers license, banking information, etc.) then you will need to assume you are at risk for identity thefts, and take steps to protect your identity.
