Nothing beats the excitement and relief when you step into a foreign country without any visa hassles or paperwork. In fact, that tends to motivate you more to visit such a nation. This is one situation the film fraternity loves to have at all times.
As a result, those countries where visa is free, they are attracting small budget filmmakers in a big way. Some countries are saying they are offering locations for free like Indonesia. Fact of the matter is, it is becoming expensive to shoot in India.
Hence, foreign locations are working out better and free visa is helping largely. As for the big movies, London and other cities are giving huge rebate if the shooting is done there. The film S/O Satyamurthy recovered a large part of its investment like that.