At this time, sporting goods exporter Sports Exports receives payments in British pounds for the monthly exports it sends to the United Kingdom. Although all of its receivables are denominated in pounds, it has no payable's in pounds or any other foreign currency. Sports Exports wants to assess the firm's exposure to exchange rate risk.

1. Does the company face transaction, economic, or translation exposure? Explain.
2. If the company changes the pricing policy so that the importer must pay in dollars (no more pound-to-dollar conversions), does it eliminate any of exposure you listed in part a)? Explain.