There are many ways of doing it. Some competitions use rankings that are based on previous events. Some use a preliminary event before the main competition. Sometimes in later stages of the competition it’s based on the results in the earlier stages. Sometimes there is an attempt to create a balance between different regions or demographic groups. Sometimes it’s completely random. Sometimes it’s a mixture of all of the above.
In international events, it’s common to have some special cases. Often, the host country automatically gets one or more seeded teams/competitors. And often there are measures taken to reduce the chances of certain countries facing each other due to political animosity or violent incidents at previous competitions.
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