An Australian firm $\text{'}$AA$1\text{'}$ is producing goods and selling them to Australian customers. AA$1$

obtains all inputs from other Australian firms and faces no competition from other Australian

firms. AA$1$ does have a major competitor, one which is owned and operated in New Zealand.

$\text{'}$BB$2\text{'}$ is an Australian firm which has pre$-$ordered inputs from Japan, priced in Japanese Yer$,$ to

produce and supply products to Australian customer$*.$

AA$1$ has

exposure and BB$2$ has

exposure.

economic; translation

translation; transaction

economic; transaction

transaction; translation

None of the other options are correct