Great example, very representative. Largest global tech company vs. your average offshore developer.

I don't know the situation in other countries, but in Poland Google's approach is rather typical. American corporations typically just set up an office here instead of buying services from some shady local offshore company. I don't see much of the latter around (and incidentally, the big ones are American as well - IBM, Accenture etc.)

But wouldn't you live a whole lot better in Warsaw on 50% than in Mountain View on 100% of that relatively high Google salary?

Depends on what do you mean "live better". iPads, cars, plane tickets, electronics and other luxuries aren't cheaper in Poland than they are in US. You might "live better", but you also might never be able to visit Hawaii or drive a Tesla.

By live better parent commenter almost certainly meant make more money.

Even if luxuries are not cheaper, food, shelter, healthcare etc. are, freeing up more monies.

Depends on your living situation. If you want a house in the suburbs with not terrible commute, it's going to cost you $200-400k in Warsaw vs probably three times as much in SV? This (and higher taxes in the US) can probably consume a lot of the salary difference. But, on the other hand, if you're ok with living in a small studio, you're going to make bank in SV.