1. Mashimoto Electric is based in Osaka, Japan. Mashimoto Electric has a subsidiary in Singapore that generates SGD 50 million in annual sales. Any earnings generated by the subsidiary are reinvested to support its operations. Benzai Electric is the close competitor of Mashimoto Electric. Benzai Electric is a local Japanese company located in Japan with an annual export sale to Singapore of about SGD 50 million. Based on the information provided, which firm is subject to a higher degree of translation exposure? Justify your answer with a thorough explanation of both companies.