Otherwise, if someone like China or India has a resource (labor or otherwise) which is cheaper (even if because they are undervaluing it), non purchase of that resource weakens our markets because we are artificially propping up domestic labor and resource markets at the sacrifice of consumers.
Has this always been the case...yes. A study of the British Empire and its colonies provides a huge pile of test cases.
Must domestic industries compete with and adapt to foreign supplies of labor and resources?
Well, duh!
If it is required, how come we don't have countervailing tariffs imposed right now against China?