Final answer:
Financial markets value globally diversified firms at a premium compared to industrially diversified firms due to the benefits of global market reach and risk diversification. Small countries typically gain more from international trade, while global diversification affects all relevant markets, including goods, labor, and financial markets.
Step-by-step explanation:
The question is asking to identify how the financial markets typically value the most globally diversified organizations compared to firms that are merely diversified in industry. The correct choice considering current market observations is: c. trade at a greater premium in financial markets than do industrially diversified firms. Financial markets generally ascribe a higher valuation to firms that are globally diversified as this diversification can lead to increased market reach, economies of scale, and more robust risk management against market-specific headwinds.
Firms that are globally diversified generally participate in all facets relevant to multinational operations which include the goods market, the labor market, and the financial market. Households engage primarily in the goods and financial markets but typically on the consumption or investment side.
The gains from international trade are often considered to be more significant for small countries because trade constitutes a larger proportion of their economies, and they benefit more from the economies of scale, diversity of goods and services, and the potential for specialization that international trade offers.