One of the guitar companies that I work for, Zane Guitars, is an All American made guitar company out of Antigo, WI. We have production models but are mainly a custom shop. When we started out, we were the only guitar company selling an 100% American made guitar for under $1,000.00 and most of our production models selling anywhere from $1,500.00 to $3,000.00.
With our 3 production models that sell for under 1k, they have been a very hot seller but because the profit margins are so small for us, we are now considering having those 3 models and now 1 production bass made overseas and then assembled in our Antigo, WI. shop. We are right now in talks with the production factories in China, Indonesia and Korea. I'm actually hoping if we do go this route, we go with the Korean factory. I think Korea makes the best quality between them, Indonesia and China. Indonesia is my second choice followed last, by China.
My reasons for the order of my preference is that my 2 Ibanez SR 500 Soundgear basses that were made in 1994 and 1995, were both made in Korea and to this day, have never given me an ounce of trouble. I have also owned and played other Korean made guitars and basses and the quality has actually been pretty good.
With Indonesia, I have also owned I think 2 or the guitars made from there and at least 2 basses. There quality is close to the quality of the Korean instruments I have either owned or played but it seems that the finishes from anything made in Indonesia aren't that great. I guess if you like the road worn look, that may not bother you when the finish starts to come off but if you're like me and do your best to keep your instruments in as good of shape as possible, then having the finish start coming off your guitar or bass for no reason, will probably bug you.
Now with China, almost every instrument I have ever played that come from there is just absolute garbage. Horrible fret work, noisy pickups, bridges that break super easy once tension is applied from the strings, necks twist and warp very frequently, intonation constantly going out, terrible finish work and tuning keys that have lots of play in them when tightening or loosening strings thus making it almost impossible to tune your guitar and/or bass.