Google Geographic Targeting and your Site:

This may also help you with your ranking depending on the server location your website is hosted on and your target markets etc.
If the server you host on is located in the same country and that is the country you are targeting, that is a good thing.  Although in 2009 Google has allowed Geographic targeting  through your Webmaster Tools so you can force your site to focus on one country.
Check this youtube video and let Susan from Google explain it.