Original sentence: As prices adjust to the global market, if they no longer reflect domestic productivity, lower-productivity firms in the previously protected sectors close.Automation increases output and allows for reduced cost per item.Even if temporary, only those which enjoy a competitive edge also be able to export.The loss is to previously protected sectors that were not (yet) competitive on a global scale.When these changes are not well synronized, unemployment or underemployment is a likely result.When transportation costs remain unchanged, the negative effect may be permanent; jobs in protected sectors may no longer exist.Whether "open markets" and "trade liberalization" cause problems in developing countries depends on a balance.among technological spillovers, capital inflows, and unemployment from opening up domestic markets
Edited sentence: " Outsourcing, when interpreted as a trade phenomenon, complements trade liberalization strategies not only by promoting technological spillovers and capital inflows but also by offsetting the increasing levels of unemployment which result from opening up domestic markets.Among other economic externalities, outsourcing promotes capital inflows and infrastructure.As prices adjust to those in the global market they no longer reflect domestic productivity, driving lower-productivity firms in the previously protected sectors out of business.Economic theorists argue that the resulting unemployment is only temporary as workers readjust and are eventually incorporated into the country's most productive sectors, namely those which enjoy a competitive edge over other players in the international market.In developing countries, policies that embrace the global phenomenon of outsourcing are a logical response to the ongoing movement towards "open markets" and "trade liberalization.In other words, many of the previously protected sectors were not competitive yet on a global scale, not because they naturally lacked the comparative advantage, but because industry efficiency had not yet been reached.In such cases where liberalization stunts the growth of potential industries, unemployment is a reflection of many underemployed resources.In the Global South, where technological development is drastically lower than in the North, the redeployment of human and capital resources into new export markets has not come at the cost of necessarily low-productivity sectors but rather underdeveloped ones.Nonetheless, rapid liberalization of markets in developing countries has not maximized the productivity potential of the region.Outsourcing fills in the gap of receding protected national industries, improving employment and living standards