Imagine you can buy your groceries at your local grocery store called “Pricey” and at another place that is further away on the other side of the city called “Cheapish.” You have been going to your local Pricey store because, on average, the stuff you buy there has been better quality and because it is more trouble to go to the lower-price place, as it is more distance and a hassle.
You are also simply in the habit of going to the local high-price place. You know the people, you know how it works, you find yourself around easily, and it is generally quite practical. Besides, Cheapish is not stable and is not reliable, not as well organized, and even had riots and crime around the parking lot a few times. This is global production and labor between 1950 and 1990: industrialized countries had an edge.