The layers of work arbitrage are incredibly deep. It's all about connections, I do a lot of Shopify freelancing and I'm typically the 3rd or 4th layer away from the actual business. It's typically something like the business hires a marketing agency, the agency hires a development company. The development company then hires a freelancer. Now I actually do the work myself, but it seems like a ton of those freelancers simply rehire another freelancer in a cheaper country. Then it seems in many cases that foreign freelancer isn't even a developer but just someone who speaks English well enough and then hires the actual non-english speaking coders locally.

It's not much different in other industries though, so many layers of subcontracting to finally get to a potentially illegal immigrant that does the actual work.