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Hi Aneesh. Display campaigns in Google Ads Bid Strategy will not automatically adjust bid modifiers for your campaign. However, I suspect (only Google knows for sure) that Google will adjust the auction-time bid for your ad based on the viewer’s location and many other data points Google has available.
If you consistently see poor performance in specific geo targets, you may consider adjusting the bid modifier to lower that bids for that geo target or removing the geo target all together.