Supercell is in Finland, an EU country. From my understanding Supercell actually pays much higher than prevailing wages.
Not to say the above is correct - it's no sweat shop and the few outliers like supercell and rovio cannot possibly be there because they threw a lot of labor at it. They're quality game companies that hit the market at the right time and knew their audience enough to keep them.
Pretty sure Silicon Valley is an outlier when it comes to wages for software developers...
It's certainly no sweat shop, but I would consider it modest cost if you account for the quality of the developers.
Actually, Scandinavia in general has high quality developers on the cheap compared to the states. This while their quality of life seems on a whole better - seems a win/win to invest in or open satellite offices there :)
This flexibility to lay off people is not always a win/win for employees (considering Nokia/ALU merger right now) but I think that investors generally overestimate the bureaucratic difficulties in Scandinavian countries in this respect. Scandinavian countries are very free market economies despite being "socialist".