FTT will be exposed to transaction risks as the Indonesian currency will appreciate over time because of the expected inflation rates

FTT will be exposed to transaction risk The Indonesian currency that it receives Is likely to decline over time because of anticipated inflation

FTT could ask for ail payments to K to be made in its home currency, which would reduce exposure to currency risk

CTT will be exposed to translation risk because FTT will almost certainly have to reflect the changing prices in its selling price and it will be difficult for CTT to make a profit

FTT could investigate whether it could import anything from Indonesia in order to create a natural hedge.