Last night, Steve Jobs' errand boy, Tim Cook, got roasted on 60 Minutes for tax evasion and mass outsourcing. His response as to why Apple outsources everything to China, is because they can't find the right skills in the U.S.
In other words, corporations outsourced all of the skills, and now they can't find any. It's human history's biggest circle of jerks:
Apple's profit margins are under a daily magnifying glass by armies of Wall Street analysts, with each minor change causing gyrations in the stock - and 99% of Tim Cook's compensation is tied to the stock. BUT, the cost advantage has nothing to do with it...sure: