Proxy is basically used to show that you are operating from a different Country/Region than the actual Country/Region you are operating from.
For example, if you live in the US but want to choose hosting services in the UK and you are aware of the fact that the hosting provider from whom you wish to purchase services offers services to UK based clients only, you may use a UK Proxy to assure the hosting provider that you are a UK based client ;)
Though, this is not the only reason one uses a Proxy. You may also use a Proxy for some illegal activities or if you are worried about your original IP address being blocked by some provider or for some other reason.
I hope this helps
