You're not alone there. I have a bit of trouble wrapping my mind around that as well. It seems to me that things have to be made very cheaply, incredibly so, in order to be able to tack on the handling/shipping and still sell the product for a fraction of what a domestic product goes for.
On the other hand, they don't have to deal with all our enviromental regs, H.R. regs, health care costs, corporate taxes (ours are about the highest in the world), and liability laws.
-Ron