This has been on a limited scale. Not a global scale. I don't buy it.
Let me give you an example: I have a neighbor that provides scaffolding for nuclear power plants. He has decided to go to China for his parts. It saves him about 20% percent on material costs. He went there and paid off the locals. He was wined and dined and provided prostitutes.
Since he has done this the company that used to provide the parts here in the U.S. has lost his business.
A company in China is paying for some real cheap labor. The kicker is that he got about 85% of all the contracts. He had no real competition.
Now you have about ten or so boats in China being raised but only one here. Let's not forget the great tips he gives the prostitutes, either.
He really owes it to himself and/or his stockholders, to learn to chisel the Chinese prostitutes, too. After all, they have no market power.
How would a Harvard B-School professor say it? He needs to "harness his leverage against cost factors" a little better.