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J Curve

   Also found in: Wikipedia 0.04 sec.
J Curve
A theory stating that a country's trade deficit will worsen initially after the depreciation of its currency because higher prices on foreign imports will be greater than the reduced volume of imports.

Notes:
The effects of the change in the price of exports compared to imports will eventually induce an expansion of exports and a cut in imports--which, in turn, will improve the balance of payments.
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Hence it is not surprising that The J Curve combines both realist concerns for national interests with the contemporary business world's demand for effective modeling.
Some unconventional wisdom by Pham, J. Peter / The National Interest
The J Curve can help investors better manage the risks they face abroad by allowing them to see why some countries are in crisis and unstable while others are prosperous and politically solid.
Ian Bremmer, President of Eurasia Group, to address the CFA Society ... by Business Wire
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