If corporations could not have moved operations offshore to exploit workers and the environment in other countries for lower cost, then they would not have. They were permitted to.
Where the old "labor costs did killed it" canard really falls over is when you look at primary industry and things that physically can't be packed up and moved off shore in western countries. Mining, farming, forestry, fishing, things like that. Traditionally a lot of those industries have had high labor input costs too. They miraculously didn't all fall over like manufacturing though.
Labor costs are a cost, same as compliance with other workplace regulations and environmental laws of course. They are not the reason manufacturing was offshored though, they are the reason that corporations bribed treasonous politicians to allow this offshoring to occur with no penalty. As I said.
