I'm an auto analyst for a brokerage in Korea, and I would like to comment on "Buying in China."
Nike shoes are made for $2-$5 a pair in Indonesia. News that some of the products in Kathie Lee Gifford's clothing line came from sweatshops likely hurt sales of her clothes, but Americans still went out and bought Gap shirts the next day. Where are they made? Textile plants in Mexico and Asia.
The bottom line is that Americans with jobs will sympathize with those who don't have them, but if they can get a quality product for $3,000 less, how many will make a statement about "buy American"? Very few in my opinion.
But luckily for your question, if you believe in pure economics, countries that specialize in areas in which they have competitive advantages will be better off. America's open economy didn't hurt it in the 1990s when more and more manufacturing jobs were moving to Mexico or Canada or China.
Likewise, though the economy is in a rut now, America is still better off in the long-run without enacting protectionist measures. That's what it would take to make U.S. carmakers not seek the lowest priced part.
Just look at economies around the world that have been "open" to free trade, like Singapore. It managed to make its people well-off relative to other nations in just one generation, without any natural resources, all on the back of trade and no protectionism.
Wherever we find closed or protected economies, stagnation sets in. I'm not American, but America has a lot to be proud of and being an open economy seems to be fundamental to its economic success.
Granted, change is never easy, but other jobs will open up for workers losing their job in one sector.
