I think the lack of legal recourse if somebody behaves unethically / illegally could be an issue when it comes to more obscure jurisdictions. We don’t think about it day-to-day but a lot of the trust between employer/customer and employee/contractor comes from the fact that the former can make life hell for the latter if they do something really crazy (like upload the code base on Pirate Bay).

If you have a contractor working from the outskirts of Timbuktu, who do you call if they go completely rouge on you?