Paying below the value that labor creates and pocketing the difference = extraction or exploitation.

The fact that other people in that town are also being exploited doesn't make it any better.

Foreign companies suddenly increasing local wage levels isn't popular with local governments because it means all the local essential workers, doctors, government employees etc quit their jobs to work for the foreign company.

oh you wrote "=" so its true?

What you’ve just described there is capitalism, and the capture of crystallised labour-time by the capital classes.

Thing is, we tried the alternative. Quite a few times. The outcomes were considerably worse for everyone than capitalist economies.