Generally speaking, you should try to go to school in the region where you plan to work post MBA. The network you build during school ends up being one of your most valuable assets, so the further away you are from your network, the less likely it is you will leverage it to the full potential. As for GPA, I generally consider it the most forgivable attribute of your application since it's not directly comparable to anything except for someone else who graduated from the same program. This is why the GMAT is so important--it's a true apples to apples comparison to other applicants because they took the same test. What do you need to get? There's no easy answer here, but certainly if you are aiming for something, try for getting above the average GMAT score at your target schools. If you come in under, it doesn't mean you won't get in, but indeed the percentage of students who are admitted is inversely correlated to their GMAT percentile at their target schools.
In other words, the farther you are below the average, the less likely it is you will get in.
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