Why would a devaluation of the currency reduce a trade deficit?

Question

Why would a devaluation of the currency reduce a trade deficit?

Answer 1

It makes exports relatively more attractive and imports relatively more expensive.

Answer 2

it makes the goods and services made in america cheaper to the people in other countries.

because the goods are now cheaper for them other countries will be a little more likely to either import more of our goods or come to america to buy stuff.

Answer 3

All the prior answers are correct, but please do not forget the phenomenon known as the "J Curve!"

As the country's currency devalues, the trade deficit will actually get worse before it gets better.  Why?  With the devalued currency, exports become cheaper to foreigners and imports become more expensive to the home country.  But, because import/export contracts are placed months ahead their levels will stay constant.  With higher priced imports and lower priced exports at the same quantities it will make for an even worse trade balance.  However, soon after the devaluation the import/export levels will react and respond to the new currency value, and ultimately cause a reduction in the trade deficit.(all other things being equal)

J-curve is a macro theory. (Also used in political science and medicine)