I know that is the standard history, I took economics at Berkeley and was taught all that. I simply don't believe that's the major factor. I think productive capacity and innovation are more important than international trade, beyond a certain scale.
I do cry for the middle class and lower classes in the west, and for the beset upon labor of the third world. It worries me greatly: my class lives very well, but friends and family that didn't win the IQ lottery are falling apart.