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 19% on average against all major trading partner currencies. What is the pre-devaluation and post-devaluation trade balance? Initial spot exchange rate, $/fc 1.98 Price of exports, dollars ($) 19.0000 Price of imports, foreign currency (fc) 13.9800 Quantity of exports, units Quantity of imports, units 130 Percentage devaluation of the dollar 19.00 110 What is the pre-devaluation trade balance? The revenues from exports are (Round to the nearest cent.) The expenditures on imports in foreign currency are fc (Round to two decimal places.) The expenditures on imports in U.S. dollars are $ (Round to the nearest cent.) Calculate the pre-devaluation trade balance below: (Round U.S. dollar values to the nearest cent and round foreign currency to two decimal places.) Pre-devaluation trade balance $ fc Revenues from exports, U.S. dollars Expenditures on imports, foreign currency Expenditures on imports, U.S. dollars Pre-devaluation trade balance AP $ The new spot exchange rate after devaluation is $ fc. (Round to four decimal places.) The new expenditures on imports in U.S. dollars are $ (Round to the nearest cent.) Calculate the post-devaluation trade balance below: (Round U.S. dollar values to the nearest cent and round foreign currency to two decimal places.) $ Post-devaluation trade balance Revenues from exports, U.S. dollars Expenditures on imports, foreign currency Expenditures on imports, U.S. dollars Post-devaluation trade balance fc $ $ CA 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 19% on average against all major trading partner currencies. What is the pre-devaluation and post-devaluation trade balance? Initial spot exchange rate, $/fc 1.98 Price of exports, dollars ($) 19.0000 Price of imports, foreign currency (fc) 13.9800 Quantity of exports, units Quantity of imports, units 130 Percentage devaluation of the dollar 19.00 110 What is the pre-devaluation trade balance? The revenues from exports are (Round to the nearest cent.) The expenditures on imports in foreign currency are fc (Round to two decimal places.) The expenditures on imports in U.S. dollars are $ (Round to the nearest cent.) Calculate the pre-devaluation trade balance below: (Round U.S. dollar values to the nearest cent and round foreign currency to two decimal places.) Pre-devaluation trade balance $ fc Revenues from exports, U.S. dollars Expenditures on imports, foreign currency Expenditures on imports, U.S. dollars Pre-devaluation trade balance AP $ The new spot exchange rate after devaluation is $ fc. (Round to four decimal places.) The new expenditures on imports in U.S. dollars are $ (Round to the nearest cent.) Calculate the post-devaluation trade balance below: (Round U.S. dollar values to the nearest cent and round foreign currency to two decimal places.) $ Post-devaluation trade balance Revenues from exports, U.S. dollars Expenditures on imports, foreign currency Expenditures on imports, U.S. dollars Post-devaluation trade balance fc $ $ CA
