The geo-arbitrage (geographic arbitration) is the practice of economic-financial speculation based on disparity between geographic locations and different markets. The term was devised by the author Tim Ferris in the bestseller book The 4-Hour Workweek. In the following two paragraphs I'll analyze ways in which an individual could benefit from geo-arbitrage.
The number of job offerings with a decent salary and the option of telework is increasing. The digital nomadism exploits this combination by moving to countries with a low cost of living and therefore maximize purchasing power.
Let's say a Swiss software programmer that earns 60000 EUR/year moves to Bulgaria. In Bulgaria, with the cost of living at a third of the Switzerland (source), the same employee would gain with a purchasing power exceeding 180,000 EUR.
When hear the word "outsourcing", we often think of a western megacompany, that contracts manufacturing and services to emerging countries, obtaining advantageous prices thanks to the lower cost of living and lower labor costs.
But outsourcing can be a precious resource also for freelances or private people: e.g. the same software developer could rely on a language translator to export its own App abroad; or a couple of professionals in career could hire a party planner for the son's birthday.
In general, you delegate activities deemed "secondary" to focus better on what for you is more productive.