World trade has grown a lot since the mid-20th century, thanks to agreements like Bretton Woods and GATT that lowered trade barriers. This helped companies produce goods more efficiently and boosted global trade. Free trade can benefit small countries if they can't affect world prices. However, whether trade agreements increase or decrease a country's well-being depends on how trade flows change. If trade increases with agreement partners but doesn't reduce trade with other countries, it's good for the members. But if trade with agreement partners comes at the expense of trade with others, it's bad for the members. The main goal is to understand if trade agreements improve the well-being of countries that sign them.