I don't know how they do it in the US, but in the UK it works like this: * Rent a house near the office that the contract is in. Transport costs are zero becau

I don't know how they do it in the US, but in the UK it works like this: * Rent a house near the office that the contract is in. Transport costs are zero because staff can walk to the office. * Put 5-8 people in the house. So rent is 1/5th of what it would be for the locals * Arrange communal food where someone cooks a meal for everyone, so food costs are significantly reduced. * House is fully furnished. Including everything in the kitchen, TVs, etc. So there is no need to go and buy 'stuff'. * It gets a bit exploitative, but heating costs can also be drastically (and uncomfortably) reduced. Given the right assistance (housing, food, etc) and being prepared to have a miserable time (not going out, no travel to big cities, no weekend breaks, bland food, crowded living) it is possible to live frugally. This gives significant local competitiveness while being able to save in a home currency.