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That way you serve separate versions of pages based on the language preference that the browser or bot specifies.
for more information on the topic.
I actually found a solution that is free. It involves uploading an free IP/Country database to MySql. You then add a index.php to your site. The index.php is easily configured, you just need to tell it the location of the MySql datbase and login details. And what pages to redirect to based on country.