outsourcing

Outsourcing is buzword now a days, rather I should say a Biz word. The whole business community revolves around it. Its the most volatile 'love and hate' relationship of modern times. Lets try to see the other side of the coin and see if it fits into an equation.
Imagine a country X, outsources some of her work in country Y. X being advanced country, have enormous need of goods, but because of high life standards, its getting difficult to gain the profits at expected level locally. On the other side, Y is a developing country, have enough resources and skills available, but in need of more work and more money. It may look like Y is extracting something out of X to become rich, but the other side of it, X is getting the same item at much lower manufacturing cost. So there 2 scenarios, either keeping profit margin constants, consumer in X gets the item at cheaper price or producer in X gets richer by gulping the additional profit. Either case, consumer benefits, and most likely the producer as well. But at the same time, developer in Y becomes richer, so is it a win-win situation?
In a way yes, because at one point of time, Y would become rich enough to start acting like X, and would outsource her needs to some other country Z. It could become a chain in itself, but then it has to loop back to the origin. In other words, its always X's responsibility to maintain the same gap with Y in terms of life standard, so that when Y advances, and passes it onto Z and so on till it comes back to X, X should have advanced to a proportional high, so it would still have the necessity to outsource back to Y.
In this big chain, the one who would not be able to maintain this gap, would be responsible of breaking the chain and in tern herself going down, making it lose-win situation.
It's a political compulsion in lieu of business accountability.