Its not as real time as it looks - there is atleast 70ms latency between someone in the US and UK - probably more like 120-150ms.
The way it works is via whats called client side prediction where your copy of the game running on your PC takes the data thats coming in and tries to "guess" ahead a little - generally using things like dead reckoning its possible to fairly accurately build a real time picture of whats going on but sometimes it gets it wrong which is why you have "registry" issue where things don't quite happen right i.e. bullets fail to hit the player your shooting at.
The time it takes data to get to the US and back is very slight tho around 1/10th of a second so most people won't notice the delay at all.
EDIT: Source/HL and quake/doom based game engines usually have console commands to allow you to turn off prediction - typically something like cl_predict* - disabling those will show you what its really like

not very playable at all.