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, $/fc Price of exports, dollars ($) 1.93 20.3500 Price of imports, foreign currency (fc) 12.0100 Quantity of exports, units 130 Quantity of imports, units 150 Percentage devaluation of the dollar 19.00 What is the pre-devaluation trade balance? The revenues from exports are $ 1980. (Round to the nearest cent.) The expenditures on imports in foreign currency are fc 1726.4. (Round to two decimal places.) The expenditures on imports in U.S. dollars are $ 3694.5 (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 Revenues from exports, U.S. dollars 1,980.00 Expenditures on imports, foreign currency fc 1,726.40 Expenditures on imports, U.S. dollars 3,694.50 $ (1,714.50) Pre-devaluation trade balance The new spot exchange rate after devaluation is $ 2.6750 /fc. (Round to four decimal places.) The new expenditures on imports in U.S. dollars are $ 4,618.12. (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 1,980.00 Expenditures on imports, foreign currency fc 1,726.40 Expenditures on imports, U.S. dollars $ 4,618.12 Post-devaluation trade balance $ (2,638.12)