Multiple currency eCommerce site - advice needed

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We have a an ecommerce site (magento) in development and we want users to have the option of selecting their currency. So we have decided on three currencies - euro, sterling and dollar.

The issue we have is we will have different VAT rates to sell to euro and sterling customers. Also, their are only certain items that we can sell to Ireland and not the UK or the US. So we want the "Add to Cart" and "Buy Now" button, for certain products, excluded from the UK and US sites.

The developers have told me that the best option is to have the different currencies in different folders so - - Website Design - Print - Graphic Design - Hosting - Content Management Systems - Ecommerce Websites - Ireland will be the euro site, will be sterling and will be dollar. I am wondering is this the best way to do it?

Will we be penalised for duplicate content because they are in different folders? Would we be better putting them into subdomain -,

Also, they say it is alot of work just to have the one site where the currency changes automatically through the backend because we are using different VAT rates, so they would have to custom changes...
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