Nothing beats "it's cheaper". What happened to blue collar jobs in the US is coming for white collar jobs. Even if you don't do it, your competitor will and drive you out of business.
That is a good point. If I understand you correctly, a situation where someone comes to the US (for example) with deep ties to another country and knows the legal boundaries of both lands. They then have less of a trust issue farming out work to that lower wage location. Yes, I can see that happening in some cases.