Website data logging question

Is it possible log the number of hits on a web site by the originating region?
The purpose is to get a statistic on the regional origin of all the hits, the number of downloads per hit together with downloads per region and correlate them to see how effective (or poor) the web site localisation is.

What I want to do is:
a) see if my web site visitor (a hit) is from the USA, UK, China ect..
b) if the (any) visitor downloads a specific file: log what country he is from.

I only need rough geographical location data (preferably on a country level).

AFIAK it such logging should be possible with any more or less standard web site setup? If not, what additional equipment/Software would be needed?
Are there any legal implications about doing that kind of logging [?]

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