Just adding to this conversation. I work for a local manufacturer of electronic goods. We used to have a philosophy of supporting local business and keeping it all in WA. But sadly people just demand cheaper and cheaper prices and we are forced to outsource things to China mainly.
It makes me really sad but the owners of this company have to eat and pay the bills so they have to find profits somewhere.

I think this is just the knock on effect of the whole coles and woolworths thing. Everyone expects everything should be getting cheaper and it filters into all areas of all markets. Frankly very few people care any more that the company makes things right here in WA, they just complain it is too expensive and buy else where.

On a more related note to the original conversation. I now have a rule of buying all my fruit and vegetables from the local independent fruit and veg shop. It is slightly more expensive but they are much much better quality and a better range also.
I also get my more expensive meats from the local butcher. Once again the quality and service is way better.

In short you genuinely get a better product and you support locals, its win win and i encourage everyone to do what they can to support small businesses. I know not everyone can afford to buy everything at higher prices but try it for some things, whatever you can it all helps.