To do it manually, select your country. Setup states and their abbreviations. You might need to find the equivalent of "states" in your local context. This will be required from users when setting up an enterprise, or for customer when cheking out. So it needs to make sense for them. In France for instance, the local instance has chosen to list the "départements" and not "régions" which would have been the litteral translation, but département was more meaningful for local people.