In order to effectively improve the work efficiency of the International Affairs Department, this paper proposes a coordination management and competition analysis of the International Affairs Department based on MS-VAR model. The main content of this method is based on the relevant research of MS-VAR model. This paper analyzes the impulse response function of each variable of the model, uses short-term international capital flow analysis, and finally constructs a system based on MS-VAR model through data calculation. The results showed that 33.76% of the samples were in the state of Zone 1, and the duration reached 8.8; 66.24% of the samples were in the system 2, and the duration reached 17.27. In general, the two systems had high stability. The technical method based on MS-VAR model can provide an effective and accurate way for the International Affairs Department to coordinate management and competitive analysis.