World trade has grown a lot since the mid-20th century, thanks to agreements like Bretton Woods and GATT that lowered trade barriers. Free trade can benefit small countries if they can't affect global prices. But whether trade agreements help or hurt a country's well-being depends on how trade flows change. If trade increases with agreement members by reducing trade with other countries, it can be bad for the members. But if trade grows with agreement partners without cutting off other trade, it can boost members' well-being. It's important for governments to consider how trade agreements affect their citizens' welfare.