While I agree with Lesley that it's best not to translate the proper nouns associated with place names - it's not always as simple as that. For instance, the Spanish island of Mallorca is mostly referred to as Majorca in the UK. So in these situations I would go for the version that is most widely understood (and searched for) in the target region.
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RE: What are the best practices for translation of city/state names for international SEO? (ie. New York in English vs. Nueva York in Spanish)