J Curve

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J Curve

1. In charting, the theoretical trend of a country's trade balance after the devaluation of its currency. After a devaluation in currency, there is often a slight increase in the trade deficit, but the long-term effect is a trade surplus due to the fact that a good sold in a devalued currency makes a good less expensive for international buyers. This is represented graphically as a curve that briefly dips below the x-axis, representing time, before turning upwards, resembling the letter J. On this graph, the y-axis represents the trade balance.

2. In equity funds, the theoretical trend of the internal rate of return over several years. Most funds operate at a loss at their beginning, due in part to their start-up costs. Later, if the fund is successful, the internal rate of return rises significantly. This is represented graphically as a curve that briefly dips below the x-axis, representing time, before turning upwards, resembling the letter J. On this graph, the y-axis represents the internal rate of return.
References in periodicals archive ?
Introductory texts on environmental science for undergraduates express the key ideas with simple graphs of J-curves and S-curves and avoid the differential equations, which are unlikely to be intelligible to this book's target audience.
Other questions include comparing your profitability to others in the same industry and importantly how we are balancing profit and loss J-curves.
Perhaps the most direct method for selecting an impact-cushioning material is the use of cushioning efficiency curves, or J-curves (see figure 1).
Use of J-curves allows the easy selection of materials to accommodate an actual shock event.
J-curves are generated using standard impact tests, and can be obtained for practically any type of material or component.
J-curves prove invaluable in the selection of materials, as they clearly indicate the energy density, or impact severity, over which a material is effective.