A thread at WebmasterWorld named "Google Language: How do they recognise which index you want to show in?" These types of questions are becoming more and more popular at the forums and conference. At SES Toronto 05, there was a session specifically about these issues, named Language & Domain Name Issues. Some really great information there. The take away points I got from that session and what I would recommend to those that currently want to proceed with a country specific SEO localization strategy are:

Get domain name extension local to the country, write the site in the language of the country, try hosting in that country, and get links from pages that have the above characteristics. I believe that I ordered the last sentence in the order of importance. In addition to this entry, I have more entries related to this topic named:

- Country Specific Filters & Weights
- Ranking Well Outside US Centric Google Results

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