Trade Deficits and J-Curve Adjustment Paths Assume the United States has the following import/export volumes and prices. It undertakes a major "devaluation" of the dollar, say 18% on average against all major trading partner' currencies. What is the pre-devaluation and post-devaluation trade balance? Assumptions Values Initial spot exchange rate, $/fc 2.00 Price of exports, dollars ($) 20.0000 Price of imports, foreign currency (fc) 12.0000 Quantity of exports, units 100 Quantity of imports, units 120 Percentage devaluation of the dollar 18.00% Price elasticity of demand, imports (0.900)