The globalization developed rapidly after the Cold War. The effect of economic relation on international peace becomes more and more significant. Especially, the effect of international trade and foreign direct investment (FDI) draws much attention. After the literature review, the paper uses the panel data of 29 countries in 1991-2000 periods to do empirical research. Through constituting VAR model to do variance decomposition, the paper explores that the trade and FDI has prominent effect in reducing international conflict, and trade and FDI can promote international peace complementarily. T...