Yup - that's how it works. And we sell stuff we're good at doing - and leave what does not make a profit to people who CAN make a profit doing that. This is the global capitalism that has dragged us screaming and kicking to where we are now.
You are truly an idiot, as the company I worked for went bankrupt using the logic you imagine to be so wonderful.
It set up a manufacturing joint venture factory in China as the cost of manufacture are so much lower, then tried importing product from there to sell at the usual UK prices relying on it's reputation to sell what turned out to be inferior goods.
Result , pretty soon it lost so much market share it closed down, leaving a thriving company in China happily selling inferior goods into a huge home market.
That as you put it has dragged us screaming and kicking to where we are now.
Your ideas are both a danger to the country and to the world at large.
Capitalism when uncontrolled is very dangerous,it has it's points in the service of the nation, but it is dangerous when allowed to run riot.
And as we see every day it is reaching the point of endangering the future of life on this planet.