How do information frictions affect international prices and trade? In a standard, two-countryArmingtonmodel of trade, information frictions impede the coordination of exporting behavioracross countries. Because the terms of trade depend on relative exports, less coordination leadsto more volatile terms of trade. Volatility in the terms of trade has the potential to reduce thelevel of trade by making trade more risky, but it also has the potential to increase the level oftrade by increasing the expected terms of trade. We derive general conditions on preferencesas to which of these forces the increase in risk or increase in return dominate. With CESpreferences, as long as goods are not too substitutable, information frictions impede trade. Withempirically plausible elasticities of substitution, information frictions facilitate trade.