Have a look at this video from Matt Cutts for more clarification:-
Also See:-
Location Relevancy System and Relevancy Score
Types of URL Redirections
Mistakes to Avoid Using Rel=”Canonical”
Easy Seo Tips
Learn Seo – Easy Seo Tutorial
Navigation in Seo
How to Set a Geographic Target for Your Site?
Search Queries in Webmasters Tools
How to Find Out the Total Number of Pages Blocked by Robots.txt
Google Tag Manager
Google Adwords Bidding
Multi Channel Funnel in Google Analytics