Search engines try not only to bring the most relevant content to the searchers; they also try to bring them to pages written in the same alphabet, possibly in the same language, and get the user as close to home as possible in the realm of their search results. That makes sense since if a user is looking for information about the environment he will be probably more interested to information about the part of the country where he lives, if he is doing a generic query.
Search engines will determine country not only based on the domain name, but also the country of a website's physical location based upon IP address. This is a good reason to check where is physically located the host service that you are using. In particular there is a free tool at http://www.webconfs.com/website-to-country.php, which helps determine the Country in which the specified website is hosted.
"Themes" are another factor to keep in mind during optimization. A theme is the topic of a website, what the web pages are about. For Google it is particularly important.
Let consider the example of a site about jewellery. Probably there are pages which speak about bracelets, necklaces, rings and so on. The overall theme is jewellery and, if it is search engines optimized, it will rank quite well about the search term "jewellery"; however it will rank worse than a website about just rings with the search term "ring". Even if this second website is much smaller since it is specialised in that subject its keyword "ring" is not diluted with other search terms.
Anyway if the jewellery website divides its website in different sections, every one specialized in a different item, those pages will be strongly themed towards a different item and the correspondent keyword will not be diluted among the others. Consequently the jewellery website will rank well for the search term "ring" with one section and for the term "bracelets" with another section.