Yes, absolutely. I went to college for manufacturing engineering. I interned at a local water faucet manufacturer owned by a multinational corporation, and initially it appeared as if my internship would end up being hired as a full-time engineer.
One engineering group I worked with spent most of a year developing an installation feature that would greatly enhance product value and justify higher price compared to low-end overseas alternatives. Once that feature hit production models, it was a huge success, and all of a sudden the 200X price difference was not too much for plumbers to pay since it greatly lowered installation costs.
But then six months later, those ultra-cheap knock off faucets started showing up with that very same reverse engineered feature, but at a fraction of the cost in part because of inexpensive manufacturing labor. US Patents are very difficult to enforce overseas, I learned.
Not too long afterward that manufacturing plant shut down and offloaded work to some of those same suppliers it previously competed with.
TL; DR: "Race to the Bottom" is not a term coined in surveillance, but has been used in many industries for decades.