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To ask where the location of a state is as part of a larger area, we can ask
Where in the US is Montana?
Montana is in the North of the US.
What about a question on the locations of two countries for example?
I mean a question the answer to which is:
"Canada is north of the US."
Something like:
Where of the US is Canada located?
It is North of the US.
The form sounds kind of strange to me, though. Is there a better way to ask that question?
Where in the US is Montana?
Montana is in the northern part of the US.
It is better to use "part" because you are referring to an area of land. "north" in your example is just a direction.
Where in relation to the US is Canada located?
It is north of the US.
"relation" is used to set the reference point (the US).
Also, directions like north are not capitalized unless part of a proper name (Ex. North America).
