There are many reasons why certain companies and certain industries prefer local employees. Yes, "inertia" is a big one, but there are legitimate reasons too.

There are many reasons why certain companies and certain industries prefer local employees. Yes, "inertia" is a big one, but there are legitimate reasons too. And there is a counterpoint to your argument about talent pool. Yes, if you hire remote people, you can reach the entire world. But you are also competing with the entire world to get the best talent. A small-to-medium, non-famous company may struggle to attract worldwide rockstars. :)