Just to be pedantically clear

It all depends on what you are referring to.
Voice calls will fall back to 2G when outside of a 3G area - the chances are that you will not even realise the fall-back has occurred (or corresponding fall-forward to 3G when moving back into one) if the network operator has done their stuff right.
Data will operate across whatever technology it can find. As atluten has just said, it will use EDGE if it is available or bog standard 2G GPRS if that is all that is there. Note that GPRS is the lowest common denominator and
should always be present in any 2G network anywhere in the world.
The problem with having a 3G phone in an area that simply does not have 3G is that of battery life. As the handset hunts for 3G signals it uses up enormous amounts of battery. The solution, in such cases, is to set the handset to 2G only (normally possible with 3G handsets) which will give it a battery life comparable to most regular 2G-only handsets. But you will also be locking yourself down to maximum data rates from EDGE/GPRS.