starkers & Nimblin - It's happened in the U.S. as well though mostly only the manufacturing of goods has moved.
I hate to say this but usually the labor costs associated with manufacturing are the killer. Yes the worker needs to earn a wage that allows them to live and to benefit from their hard work.
An example would be buying a car. Growing up you could buy a automobile under $3,000 U.S., a really expenisve one might run up to $5,000 U.S.. Now you're lucky to find something that you consider basic transportation under $15,000 U.S.. Is there that much more material used now in making a car, no. In fact the automobile today because of light weight materials used is less safe and durable then when we grew up. Remember I'm an old fart so this goes back to the late 50's and early 60's.
The increased costs of goods eventually worked it's way into the retail and service sectors. The workers needed higher wages to buy the manufacture goods that had increased in price. Then a new cycle started with every increse in wages the cost of goods and services increased. During the mid to late 70's auto workers in the U.S. couldn't afford to buy the automobile they were helping to build, now that just wasn't right.
Oh crap, I got carried away again sorry folks. I think it's time to step away from the keyboard and watch the sunrise.