I don't think that business owner would have any other choice as they would need to remain competitive with companies who are outsourcing. That is why government involvement is necessary (I know that sounds wrong coming from a conservative). I firmly believe that the fed has been overregulating us here but not giving 2 bits about what happens under the guise of "free market global trade."
The Constitutional functions of the Federal government include laying of imposts and duties. Further individual states do not consduct foreign policy. The coining of money is another federal responsibility. These are all elgitimate functions of the Federal government and it is in no way contradictory for a conservative to want the Federal government to excise these functions correctly which is what you have argued for.
I agree with you that regulation and the trial lawyers should be curtailed(especially the trial lawyers), but that still doesn't stop the fact that the world is getting smaller every day.
Look an owner of a company is going to look for the best way to put out the best product or service for the least possible price. The fact is that overseas outsourcing is a reality and it is very attractive to business owners.
Now we all know the reality. The ones who will prosper are the ones who take advantage of that reality, IMO.