Their solution is have the site.com as the main site and then Gio IP visitors for their local countries to e.g. us.site.com or fr.site.com.
I'm trying to figure out the potential problems with this so here is my list so far:
Duplicate content - US and UK site hosted on the same domain - does this class as dup content if it's on a sub domain?
Difficulties with link building
All regional copies of the site hosted from a UK IP - will this cause a problem?
Anyone think of anything else?