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To: economics
I suggest you talk with people who went to these schools to get a clearer insight – I am mainly extrapolating from my experience at IMD. We had companies coming from all over the place, and students went all over the world. However, we did have companies with HQ in our area that do not actively recruit in other places, or that know a lot about IMD because it's part of the local landscape. I spoke with a few Tech Funds that don;t really recruit MBAs at all, but they knew some of my Profs so I got a chance to talk with them.
I would not make a decision strictly on Geography, but if you KNOW you want to work in the Palo Alto then I would suggest putting Berkley and Stanford at the top of the list.
Hope this helps,
OYOY