Off shoring everything is a bit like the Tragedy of the Commons.
If everyone does it, there is not real advantage, and all you have done is degraded the market.
If companies off shore, they can reduce costs. As a result they gain competitive advantage, increase profits and the consumer gets a bargain. Win win.
If all companies off shore, they have reduced cost to try and maintain competitiveness. Profit margins have not increased due to fierce competition, as prices are driven further down, and once margins have been cut back to the bone, quality goes down. The consumer does not win as they now have no job, or lower pay (in real terms/no pay rises year on year) and so they cannot spend as much and might not buy the product at all; and if they do the quality is lower than it used to be. The market can actually shrink and all companies in the sector are selling less.
Lose, lose, lose, lose, lose, lose.