I understand your point, but in the end, isn’t it just market forces at work? I lived in Cambodia for two years, and I definitely charges a lot less than what I do now I’m back in Europe.
It made sense for me: with two weeks of work I could live comfortably for two or three months, and I still charged way below Western market rates, so I had no problems finding clients. And it allowed me to be picky about the type of work I would accept.
You need to think about your retirement savings which you might not want to spend in Cambodia. Also maybe you want to buy stuff that costs the same everywhere, like an iPhone or a new laptop that's not garbage quality.
I mean if it's necessary to compete in the market, maybe it makes sense to lower your rates. But as long as you can charge the appropriate rate, you should.
When you're charging less you're still earning the same amount of money for your client. So everything you charge less is you making them rich.
It made sense for me: with two weeks of work I could live comfortably for two or three months, and I still charged way below Western market rates, so I had no problems finding clients. And it allowed me to be picky about the type of work I would accept.
What’s not to like?