This is dependent on a whole lot of things. It is very helpful to have your setting be an integral component of the story. If setting is an important part of characterization or plot or theme then there is a good possibility that your work will be deemed of 'higher class'.
For example, it greatly helps the novel Dracula to be (initially) base in Transylvania.
The same can be said for Moby Dick.
* Frankenstein
* Nightfall * Mission of Gravity * Left Hand of Darkness * Red Badge of Courage * The Open Boat The list can go on and on.
What you must do is consider what setting would be best to 'bring out' the 'virtues or vices' of your characters that you wish to exploit, or plot structures that you wish to engage.
For example: what if you wish to show the dehumanizing effect of industrialized society on the human spirit. Would it be well to place such a story in a rural setting? (Actually Adolph Huxley did this in Brave New World BUT the majority of such stories are in crowded slums: 1984, V for Vendetta, We, Repent Harlequin cried the Tick Tock Man...)
Both Frankenstein and Moby Dick are concerned with destructive obsessions and both at some point take place on a sailing ship. Maybe there is some aspect of sailing vessels that lean itself to the concept.
If you wish to share your plot, characterization, theme etc with us, perhaps we can make better suggestions.
the story takes place in london
school The story takes place in the future.
The story takes place in Chicago
This story takes place in Memphis, Tennessee.
the story takes place in egypt
The story takes place in a small village in rural England.
The story takes place in ancient Greece.
"Where does this story take place?" is asking for the setting or location where the events of the story occur. It seeks information on the specific place or environment that serves as the backdrop for the narrative.
the story of rip van winkle take place and the 1700
The time place and social environment in which the story take place
The story took place in a small town in rural America.
The time place and social environment in which the story take place