I'd buy that if you're talking about developing new products/new production lines, it's cheaper to have suppliers and know how hand - and it's great for margin optimization, because they have other production lines.

But that margin isn't funneled to pay wages and improve living standards.

To say wages don't play a role it's more of a corporate narrative to wash those decisions.

If wages aren't a factor, why don't they raise wages and living standards for those workers?