Outsourcing is an interesting concept when considered this way. My employer can hire me in Silicon Valley for $X or a remote engineer from Ukraine for $Y<<$X.

Outsourcing is an interesting concept when considered this way. My employer can hire me in Silicon Valley for $X or a remote engineer from Ukraine for $Y<<$X. Now clearly to the employer this is one big market where they have the choice of two similar goods at very different prices. But the two employees are in distinct but overlapping labor markets so they're not going to adjust their own prices. The employer has a choice of all employees but the reverse is not true. I can't choose to work at a local Ukrainian firm and the other person can't choose to work at a local Silicon Valley firm.