What you give as an example is a product with insanely high margins. Here, it indeed makes sense to produce it in your home country, because it won't make a hug

What you give as an example is a product with insanely high margins. Here, it indeed makes sense to produce it in your home country, because it won't make a huge difference. Most products on a market have slim margins and here such production costs make a huge difference in profit if the buyer is not willing to pay much more for products (partially) produced in the home country.