Yeah, that is one of the ways that Google uses to segment the geographic location for a business. A site hosted in France has a search advantage in Google.fr.
Originally Posted by Andy101
The USA market is unusual in that using a .us ccTLD does not give a site an advantage.
I have run into situations where USA clients with local businesses came to me because their sites did not show up in Google searches and they were getting almost zero business from their traffic. They were getting traffic, but not very much USA traffic. In two situations, I found that the site was hosted in Canada and in another it was hosted in France (don't fall for the VistaPrint hosting deal). None of the clients had any idea that their sites were hosted outside of the USA. The sites started to rank well in the USA a few months after moving them to USA hosting companies.
"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin