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In Google Merchant Center, a target country is the country where:

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In Google Merchant Center, a target country is the country where:

 A)  The products are manufactured
 B)  The retailer is located
 C)  The products are sold and will be shipped to
 D)  The products are shipped from

Explanation:

A target country is the country where the products included in your data feed are sold and will be shipped. The items uploaded to a selected target country must meet the requirements for the target country you submit to, including the feed specifications and policies.
Read more here: https://support.google.com/merchants/answer/160157?hl=en