Efficiency has nothing to do with it. See, I pay my people a dollar a day. I don't pay benefits. My government doesn't bother me with silly regulations like safety, environmental, etc. As far as taxes, since my corporation is simple a government front, all money is handled by the governmnent. They've underwritten my losses for years and will continue to. They also don't permit unions. I can get people working 12-hour shifts, 24/7, 365 days a year (holidays? vacations? please...get serious). I have so much slave labor over here I've already built four more factories.
The bottom line is that I can make the good for a fraction of your costs. And I can sell them at a loss because my government will subsidize them. No matter how efficiently you produce your goods, I will undersell you.