How does the server function work? Do I choose a location before I search for game or is it automatically using my current location and pairing it up with a close by server?
You will be thrown into NA/Oceania/etc servers if the capacity is full in your region OR there aren’t many players in your region. At least, that’s how it seemed to be in the previous Alphas.
Furthermore, if you want to play with SPECIFIC people from other countries, you can make a party with anyone in the world and go have fun with them! One player gets to pick monster, naturally, but you can always band with 3 more hunters to go hunt a random monster player.