You’re right, and it is the consequence of having technology-ignorant management that does the outsourcing.
First, they don’t like the CapEx that goes with equipment, labs, etc.
So they outsource the manufacturing.
Then they don’t like the salaries they’re paying engineers. So they ship the engineering functions off-shore, thinking that Indians and Chinese are “just as smart” (they’re not - I’ve interviewed dozens of both. what they have are credentials, not smarts).
Then the intellectual property goes out the back door in India and China.
Then their products get duplicated at one-fifth the cost and one-tenth the quality. The “free traders” consider this a victory, because people who believe in “free trade” are just as stupid as (or are) management types with liberal arts degrees who don’t know their ass from a hot rock in “making things.”
Then.. the company starts strip-mining their balance sheet, and eventually, they’re an acquisition target for the last of their IP, or they go belly up.
To quote some young managers: "Sounds like a plan." /S
Dittos on your last two paragraphs. Liberal arts majors love to live in stupid luxury, one best way to get it is via strip mining a company and getting paid well for. Could be in stock options and other ways. They will exploit and sell out America via free trade as long as they can make good money doing so.
Washington DC is stacked with trade lawyers