I am in a similar situation with promoting in different countries. From what I understand it is best to host you site in the country that you are trying to promote.
My site is in US, now I am marketing micro gaming slots in canada. Prior to doing this I had spoken with an affiliate manager and he told me I am getting sign ups in Canada. Also Godaddy is based in Canada.
I would keep asking around until you feel comfortable with it. I dont know if the best solution is to make a different site hosted in the country you wish to promote, or do geotargeting. They are options, hope that helps.
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