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Harry,
I suspect it's a combination of both. I tried to set my address to the UK one day, to check a price. Can't do it without looking up a legitimate street address there and filling the entire thing in, as if it were my shipping address. I gave up, rather than go thru the hassle.
It looks like with the new agency pricing, the publishers are setting special prices in each country, rather than only having Amazon add $2 plus VAT (which I suspect still gets added, it's just harder to predict the prices outside the US from looking at a listing).
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