Final answer:
The claim that domestic companies in the U.S. have reduced their manufacturing employment more than multinationals aligns with the trends observed in globalization, where corporations seek cheaper labor costs abroad. While this has led to job losses and increased inequality domestically, multinational corporations argue that globalization leads to lower consumer prices and benefits for investors. However, the large size of the U.S. economy means it is less affected by globalization compared to smaller economies.
Step-by-step explanation:
The impact of globalization on domestic markets in the United States reveals certain truths about how companies operate in an integrated global economy. One assertion that captures the nuanced reality is that domestic companies have reduced their manufacturing employment more than US multinationals. This is partly due to the fact that many U.S. corporations have moved their manufacturing abroad to take advantage of lower labor costs and less stringent environmental regulations. As a result, there has been a loss of well-paid working-class jobs in the U.S., leading to increased inequality and political controversies.
Despite the downside, defenders of multinational corporations suggest that these entities improve international relations and can lead to declining prices for consumer goods and rising dividends for U.S. investors. However, critics argue that these companies are contributing to job losses in the U.S. and avoiding fair taxation.
When looking at the greater picture, the U.S. economy's large size allows for a greater division of labor internally, thus it's somewhat less affected by globalization compared to smaller economies that rely heavily on cross-border trade. Nevertheless, the trend of rising export/GDP ratios worldwide signals the deepening of globalization's reach.