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Yes, that's important correction. Buyers seek lowest costs. And manufacturers and govs often try to achieve that by cutting labour costs. So still a race to the bottom, partly perpetuated by buyers.
Agreed but it doesn't have much explanatory power for B (compared to other countries or possible alternative histories etc ) buyers everywhere, of everything, choose lower price ( for same quality, speed) - firms upgrade in some places but not others
Yes!! Very exciting important question - I'm researching exactly this with @nomhossain!
e. g. BGMEA say reason to keep out foreign factories is that they would raise wages. Important consequence of the elite politics? I'll have to read the book! 
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Exactly. Probably not just about bottom line either - low wages may be the USP of some countries. Elsewhere, labour organization, labour market & productivity conditions can make worker welfare more politically salient so that it cannot be just a matter of low wages.
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. So costs of port congestion, high interest rates, electricity outages, politicised unions etc also bear down on wages