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For a cart using level 2 integration, GC requires that you "use average or typical rates" as default shipping values, prior to learning the customers "anonymous address".
How do you determine a "typical shipping rate" if you don't know if the customer is 100 or 2000 miles away?
"Keep in mind that all orders are billed in US dollars, and Google Checkout support services are only available in US English."
I sell primarily in Australia, I don't want people being billed in $US.
It is difficult to use Googles' system to calculate international shipping as it has to be a flat rate or their system will give a default message to your customers telling them that you do not ship to their country.
The way around this is to create a drop down menu that requires your customer to select his country and add the shipping cost as a product such as---
Blue Widget $50
Red widget $40
UK shipping $30
Send to Google.Checkout