Final answer:
A company with extensive international revenues faces high exchange rate exposure, and economies with significant trade volumes often prefer flexible exchange rates. A higher rate of return can lead to currency appreciation in the foreign exchange market.
Step-by-step explanation:
A company that derives a high percentage of its revenues from international markets does indeed have high exchange rate exposure. Such a company's financial performance can be significantly affected by fluctuations in exchange rates because overseas revenues must be converted into the company's home currency. A higher rate of return tends to attract foreign capital, leading to an appreciation of the home country's currency in the foreign exchange market. Meanwhile, countries with substantial imports and exports are more likely to adopt a flexible exchange rate to better cope with external shocks and fluctuations in international trade flows.