All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger. We ask Allaah to exalt his mention as well as that of his family and all his companions.
There is no harm Insha Allaah in naming this new born baby after the first baby as there is no evidence which prohibits this. There is no harm also in burying the deceased child in the mentioned country if it is not in a non-Muslim graveyard, because the Islamic jurists stated that it is not permissible to bury a Muslim in a non-Muslim graveyard and vice-versa.
Allaah knows best.