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The world economy is increasingly linked with the rapid development of international trade and international economic cooperation, economic growth continues to accelerate. But by the old international economic order to influence the level of economic development constraints, the majority of developing countries are often ignored environmental factors, predatory exploitation of resources, ignore the emissions pollution. Import and export, export at low prices a lot of resources and pollution-intensive products, such as wood, paper pulp, minerals, non-ferrous metals will be the case, such as fuel, textile, printing and dyeing, leather, imported a large number of hazardous waste; attracting foreign investment, foreign pollution-intensive industry, the high proportion of investment has become the object of the developed countries to transfer sunset industry. Developing countries, the cost of the development of foreign trade, despite the natural environment has caused serious environmental pollution problems, and the health and property of the people suffered a great loss. The use of the theory of market failure, the reason for this problem from the point of view of economics. First, international trade and investment activities will make the externalities in international transfers. Developed countries, some of the production and consumption activities will cause environmental pollution, need to pay expensive fees in their own countries and in developing countries, due to weak environmental awareness, just a small fee paid much lower than the real environmental costs. Thus, the production and consumption activities will be transferred to developing countries, externalities along across borders. Secondly, resources and the environment, the nature of public goods, the \Then, the combined cost internalization theory, pointed out that the way to solve the contradiction between trade and environment. Externalized environmental costs is the root of the problem, and thus the environmental costs covered by the price, so that prices truly reflect the full social costs of the product, has become a fundamental policy of coordination between environment and trade relations. Definition of environmental resources, property rights, environmental resources, reasonable pricing, environmental taxes, issuing tradeable pollution permits and the implementation of environmental labeling system policy, are an effective means of internalization of environmental costs. Finally, for the specific situation of China's foreign trade and attracting foreign investment, to promote the harmonious development of trade and the environment some policy recommendations. In the country, we should be thinking of sustainable development guidance, will combine the adjustment of industrial structure and trade structure adjustment, and continuously improve the environmental protection laws and regulations to encourage the development of environmental protection industry, and gradually realize the common development of the environment and trade. In the world, China should actively participate in international negotiations on environment and trade, strengthen communication and consultation, to create a favorable international environment for the coordinated development of the trade and the environment.
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