Definitely. They will always.
In the information age, location is no restriction at all. How agents normally work is almost never face-to-face.
You begin by querying a literary agent, and this is done by snail-mail or e-mail. You can find this specification varies with each agency's submission guidelines, so be sure to review those and follow them as told. Most literary agencies ask you not to drop them off personally. You will get a reply either rejecting your manuscript or requesting the partial/full manuscript. If the agent chooses to represent you, they will contact you via telephone number, which you provide them with in your query letter. Always.
After the telephone call, agents work on their own to represent your novel and try to find you a publisher. On some occasions, the agent will have you fly over to where they are in order to make changes, but this is rare. After a publisher accepts your novel, it'll go from there - the publication process can be done through e-mail or telephone communication, but most of the time, it's best done directly. Editing changes need to be made, titles swapped, a lot of things get redone.
All the best with your writing! (:
EDIT: I just wanted to point out that the answerer above me thinks skipping the agent step will be beneficial. Essentially, no. I don't mean to be rude, but I highly recommend against it. With everything I have. You have almost nonexistent chances of getting through to a major or reputable publishing corporation if you don't have an agent to stand in front of you and represent you. Most publishers don't accept unsolicited manuscripts, so they will only look at material that is backed by a literary agent, since these are trusted, trained and educated members of the industry. Only in the rarest of cases will directly contacting a publisher get you a contract. If you send an unsolicited manuscript - one that's from you and not from an agent - to any employee at a publishing company whose website clearly states they don't accept unsolicited manuscripts, your e-mail will likely be deleted before the work is read. Some e-mail servers have filters in which publishers can filter out the unsolicited queries they receive from stubborn writers.