Today Google Webmaster Tools released a video answering this question. For years there have been many discussions and theories on how to set up country-specific sites in regards to IP address and hosting locations. Recently at a conference I heard the exact opposite of the answer that Matt Cutts gives in the following video.
Many believe that the answers Google gives us are inaccurate. After hearing Matt’s response please tell us what you think. What are your experiences with what works and doesn’t work with country specific sites? Do you agree with Matt?