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okay so world equal immigrant is going to be where export supply and import demand cross right just like in normal markets where the supply and demand curves cross the world equilibrium is going to be where the export supply and the import demand cross and this is where the world price is ultimately determined okay so lets return to the US and France and their wine industries and again for simplicity were assuming that these are the only two countries right because we want to make things as easy to illustrate the point as we can so were going to assume that the US and France are the only two countries theres no transaction costs theres no cost of converting currency everything is basically very sort of ideal in a lot of ways okay so lets do you got the US market all right here at the man and supply price and quantity this is the US wine market and Im going to put fraps over here okay theres their market Im going to put their supply curve over here okay and in the middle here w