I just do not understand, how is the market price and quantity of international trade arrived.

The market price and quantity of international trade are determined by the forces of supply and demand. Let me explain the process:

1. Supply: The quantity of goods or services available for sale in the international market is the supply. It is determined by factors such as production capacity, cost of production, and government policies affecting trade. Suppliers aim to maximize their profits by selling goods at the highest possible price.

2. Demand: The quantity of goods or services that buyers are willing and able to purchase at various price levels is the demand. It is influenced by factors like consumer preferences, income levels, exchange rates, and government regulations. Buyers aim to satisfy their needs at the lowest possible price.

3. Interplay of supply and demand: The interaction between supply and demand determines the market equilibrium, that is, the price and quantity at which both buyers and sellers are satisfied. If there is an excess of supply, sellers may lower prices to attract buyers. Conversely, if there is a shortage of supply, sellers may increase prices. This process continues until a balance is reached.

4. Price determination: The market price for international trade is established at the point where the supply and demand curves intersect. This equilibrium price is known as the market-clearing price, as it clears the market of any excess supply or demand.

5. Quantity determination: The quantity of international trade is then determined by the equilibrium price and the shape of the supply and demand curves. If the price is high, quantity supplied may increase, while quantity demanded may decrease, and vice versa.

It is important to note that market conditions can change, resulting in shifts in supply and demand curves. Factors like changing costs, technological advancements, government policies, and economic conditions can impact the market price and quantity of international trade.

Understanding these principles and analyzing the factors influencing supply and demand can help you comprehend how the market price and quantity of international trade are arrived at.