I agree that the instinct of an employer is to hire employee for the lowest rate possible. But given a choice to hire between local employee and a remote employ

I agree that the instinct of an employer is to hire employee for the lowest rate possible. But given a choice to hire between local employee and a remote employee who are negotiating for the same salary and possess the same level of skills, won't the company hire the remote one as the CTC involved will be less? So if the company's expenses are already going down by hiring a remote employee, they shouldn't make the cost of living of remote employee's area an issue.