International Tax Research and Planning Name: Course: Date:  International Tax Research and Planning Investments in the general automobile industry by foreigners have increased in recent times. Companies dealing in automobile parts rely broadly on the manufacture of new vehicles in the industry. Automobile parts manufacture and supply go hand in hand with the vehicles manufactured meaning that, as more vehicles are manufactured, more the automobile companies thrive. However, for a foreigner to invest in a U.S company, there are procedures and ways in which they can make the investment. Investment in a foreign country`s company is referred to foreign direct investment (FDI). There are different types of direct foreign investment with each determined by the motive behind the investment and the manner in which the investment is made. The United States economy is open and has limited regulations against foreign investment into the country (Harford, 2004). In any investment, there are tax regulations that govern each sector of the economy and differ according to the investment. The various forms of foreign direct investment range from mergers and reinvesting of profits to complete acquisitions. The first type of investment that the client can engage in is through a joint venture. In joint ventures, two companies or individuals agree to use joint resources to start a business activity. Joint ventures undertaken in foreign markets usually attract high taxation with the company taxed as ...