If you've read or seen The Princess Diaries, then you know it's about a young girl who turns out to be the princess of a small European country called Genovia.
And in the DC universe, there's a small Arab nation called Qurac. It's located between Saudi Arabia and Iran.
And in other works where fictional countries are used, one thing is a given: They aren't located in North America. The reason is obvious. If they were located anywhere in North America, especially in territory that's US territory in real life. See, if a fictional country is located in Europe or Africa, then the majority of the readers/players/viewers won't know anything about the area where it's located.
Sure, Italian people who see a map with Genovia right between France and Italy would probably comment "But that's not possible! Genovia is located on the spot where we have the historical city of Paperinik! If Genovia is located there, then it means that our entire history must be rewritten!" But nobody who's not Italian or French knows enough about the geography of those countries to see why there couldn't be a smaller country between them. The same thing goes for Qurac.
That's why these fictional countries are never located in territory that belongs to the USA in the real world -- US people would notice how it didn't make sense. Wherever you put the fictional country, there'd be people who lived there for real and wondered what the Sam Hill s foreign country was doing in their backyard. So that's why fictional countries are always located in a place Americans don't know much about -- that way the audience won't know how little sense it makes to have a fictional country there and how different things would be if there was another country there.
Oh, and just to be clear: I'm not talking about alternative history works, or works that speculate in what would happen if a civil war broke out in today's USA (like the comic book DMZ) and so on. What I'm talking about is only stories that are supposed to take place in the real world that you and I live in.
tl;dr: The reason writers can invent a fictional country and even give it a location on the map is the fact that the audience don't know anything about what's supposed to be there.
EDIT: Originally, I made a typo and said that Genovia is located between Spain and Italy. That's been corrected now.
And in the DC universe, there's a small Arab nation called Qurac. It's located between Saudi Arabia and Iran.
And in other works where fictional countries are used, one thing is a given: They aren't located in North America. The reason is obvious. If they were located anywhere in North America, especially in territory that's US territory in real life. See, if a fictional country is located in Europe or Africa, then the majority of the readers/players/viewers won't know anything about the area where it's located.
Sure, Italian people who see a map with Genovia right between France and Italy would probably comment "But that's not possible! Genovia is located on the spot where we have the historical city of Paperinik! If Genovia is located there, then it means that our entire history must be rewritten!" But nobody who's not Italian or French knows enough about the geography of those countries to see why there couldn't be a smaller country between them. The same thing goes for Qurac.
That's why these fictional countries are never located in territory that belongs to the USA in the real world -- US people would notice how it didn't make sense. Wherever you put the fictional country, there'd be people who lived there for real and wondered what the Sam Hill s foreign country was doing in their backyard. So that's why fictional countries are always located in a place Americans don't know much about -- that way the audience won't know how little sense it makes to have a fictional country there and how different things would be if there was another country there.
Oh, and just to be clear: I'm not talking about alternative history works, or works that speculate in what would happen if a civil war broke out in today's USA (like the comic book DMZ) and so on. What I'm talking about is only stories that are supposed to take place in the real world that you and I live in.
tl;dr: The reason writers can invent a fictional country and even give it a location on the map is the fact that the audience don't know anything about what's supposed to be there.
EDIT: Originally, I made a typo and said that Genovia is located between Spain and Italy. That's been corrected now.