Hosting location and country level domain have been important factors for SEO to target results specific to a country. Hosting has been important to identify the location of a web site as search engines have been looking at IP address of the site to detect server location.
If a site was hosted on the server that was physically located in a country then site would have been included in the country specific searches .SEO suggestions for a site targeting Australia would have been to chooses provider from America than Australia. Google also allows web masters to set the GEO location within web masters tools to help them target a specific market.
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