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I have played around with this many times and always found Google to find out about blocks and redirects sooner or later. Every time I ban or lift restrictions for a country I see massive alterations in Google traffic. They do utilize peers in various countries and data centers around the globe to search for cloaking and shady tactics.
When they find inbound links to a site from a specific country, they put more emphasis on that particular regional traffic and word is they emulate different agents to search for cloaks. In fact this means if your site is ranking high in Philippines, they will look into your Filipino traffic, but they won't care if you block Bolivia or Peru.
This traffic analysis and practice was criticized by NGOs, UNICEF and journalists many times when Google banned sites from their search that were reporting about political unrest or protests against non-democratic governments, monarchs, etc. Such instances are well documented.
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