Well, I hire people and have P&L responsibility, I can say categorically that your assumption is false, at least in high-tech. We used to have an overseas team in a 'low cost' location. We fired all of them and hired local staff at almost 10x the cost.
Why? Because the talent we needed was not overseas and the overhead of managing different cultural expectations was killing us. I've seen this over and over again in tech, both in the financial & pure tech sectors.
If you are trying to actually build something, hiring 'the worlds least capable resource' is a sure fire way of going out of business.