This has been debated back and forth a few times over the years, I believe. It's been established that Metropolis is not New York, and New York exists on its own in the DC Universe. A fairly comprehensive site can be found below.  http://www.angelfire.com/nj/carlb/metropolis.html
"You need me. You wouldn't be much of a hero without a villain. And you do love being the hero, don't you. The cheering children, the swooning women, you love it so much, it's made you my most reliable accomplice." -- Lex Luthor to Superman, Question Authority, Justice League Unlimited
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