For the most part, I feel like my kids are safer overseas than in the US. I live in a culture that very highly values kids and where neighbors really are neighbors.
While the Internet has sure made it easier for my kids to talk to their grandparents, it also exposes them to threats they wouldn't ordinarily encounter as MKs.
CNET has written a pretty thorough, six-part article on "Keeping your kids safe online. You'll find age-specific tips on keeping healthy boundaries around your PC. You'll also find tips on how to configure you system, from the router down to the web browser to make your kids computer experience family friendly.
This series of articles is worth reading if you've got kids and know that living overseas isn't a bye when it comes to Internet safety.