364This chapter explains why international trade and globalization occur. It also tells why most economists are enthusiastic supporters of free trade among nations. The chapter uses examples from food and agriculture to explain the motivation behind international trade. The chapter also explains the principle of comparative advantage as it applies to the globalization of trade in food and agriculture. The chapter includes an explanation of the advantages of diversity in national resources. A three-panel diagram of trade is presented to demonstrate who wins and who loses from trade. The benefits and losses from labor immigration are analyzed in detail. The impact of exchange rates and transportation costs on trade are examined.