In 2016, the United Kingdom decided to leave the EU (referred to as Brexit). Many analysts have made arguments about how this event will affect firms in the U.K. Assume that the pound’s value relative to the euro is likely to be more volatile as a result of Brexit. For each of the following statements, insert either increase or decrease in the first blank and complete the statement by adding a clear, short explanation.

a. The economic exposure of British firms that were heavy exporters to the eurozone would have ___ because ___.

b. The translation exposure of firms based in the eurozone that had British subsidiaries would have ___ because ___.