Earlier quoted context omitted.
Companies can have internal intermediaries. Suppose you go to a country and talk to a charlatan who tells you that they have many qualified people and they'll work for 30% of what you're paying in the US. You hire them and tell them to hire more staff there. Then it turns out there are many qualified people in that country, but they don't work for 30% of what you're paying in the US, because it's a global market and…
You kind of can though. In Europe even 30% of a US FAANG wage would be an incredible wage here. 50% certainly would be. There are other problems like timezones etc. and maybe payroll taxes are higher here too but I think the possibility for labour arbitrage is definitely real.
Eg Europeans usually had much more time off. The costs of that time off scale with salary.
I do think labor arbitrage could work, I just don't think it would be in Europe. I suspect the total employee cost in Europe approaches that of the US, the money just goes to non-salary places (taxes, time off, labor protection, etc).