Tim Marman notes that offshoring to save money is like chasing your own tail - the costs always rise, and then it's time to look for another low cost provider. The world isn't infinite though, and the list of viable low cost providers is shrinking:

It's the Hyundai Effect : Not so long ago, Hyundai was seen as an inferior product compared to competitors Toyota and Honda. In order to lure that portion of the market, they had to offer something different, and the easiest way is value: give the customer just as much, or in some cases more, for a nice discount. As people become comfortable with the Hyundai in the same breath as those competitors, you no longer need to rely solely on a discount to make people notice. (In some cases, higher prices are actually better because many - perhaps rightfully - believe that too cheap equals poor quality).

Going further back, I recall the phrase "cheap Japanese products" from my childhood in the 60's. When was the last time you heard someone describe anything from Japan as "cheap"?