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The geographic limitations are based on Amazon, or any comapnies, ability to sell a particular work by a particular author in a particular country. Amazon must abide by the legal contract that exists between the author and publisher. Part of that contract is going to deal with copyright law because it determines who has the legal right to sell the book and the terms of that sale. That legal contract is binding in that country. If Amazon was to say "screw it" and sell what they want, where they want, they would be breaking the law in a variety of countries and would not be allowed to sell anything in those areas.
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