16. Explain the J-curve effect, with reference to the Marshall- Lerner condition.
{"Image DocumentName": "16. Explain the J-curve effect, with reference to the Marshall- Lerner condition.", "Image ImageDescription": "A country s trade balance experiences the J-curve effect if its currency becomes devalued. At first, the country s total value of imports (goods purchased from abroad) exceeds its total value of exports (goods sold abroad), resulting in a trade deficit. But eventually, the currency devaluation reduces the price of its exports. Consequently, the country s level of exports gradually recovers, and the country moves back to a trade surplus.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}