This is 100% spot on. Organizations build up value over the long-haul by learning things and then building on top of those things, learning some more, building on that, and so on.
Look what happened to G.E. They outsourced everything they possibly could and had a decade or two of unparalleled profitability. But, over time the well of ideas and competencies for products and services dried up and they went from being a powerhouse to a cautionary tale.
Don't export knowledge or know-how to save a few bucks. It always comes back to bite you.
This may well apply to countries as well. Due to the scales involved, it takes longer to notice the deleterious effects, and is much harder to reverse course.
I'd say it's already happened in the U.S. We're just starting to realize that you can't fully divorce the development and design process from the actual manufacturing process and expect to stay competitive for that long.
Look what happened to G.E. They outsourced everything they possibly could and had a decade or two of unparalleled profitability. But, over time the well of ideas and competencies for products and services dried up and they went from being a powerhouse to a cautionary tale.
Don't export knowledge or know-how to save a few bucks. It always comes back to bite you.