Location Arbitrage

Go back 15 years or so and this was only a serious day to day consideration if you were an international trader looking to take advantage of fluctuations in currencies and demand for particular goods.

For the rest of us, it may have come up as something to think about when going on holiday (cheap sneakers! cheap beer! My UK Sterling is worth 1.5 dollars! ah…the good old days…)

Now, millions of us are thinking about it.

And you’ve guessed it, the internet has changed everything: the range of new careers it’s created, the careers it’s changed, and the rapid enablement of true remote work.

One of the reasons to be based in London or New York or Tokyo was because you could earn more there than other places.

If you’re working in a traditional company setup this is generally still the case. Being located in the major metropolises still adds a premium on your salary that generally outstrips the increased living costs.

It’s also true if you’re a freelancer where it’s important to be able to deliver your work in-person, in real time.

You take advantage of being in that location.

But what if it makes no difference where you are located to deliver the work?