Reply #4: When you refer to "Japanese" auto manufacturing in America... [View All]

do you mean to refer to American companies that were established using some investments from Japanese investors?

Also, are you suggesting that there are too few such companies because tax laws provide no incentive to help overcome the various natural barriers that foreign investors face?
Some examples of natural barriers:
differences in time zone (which may reduce the number of hours available for communication when both or all parties are awake),
differences in language, cost of travel, cost of currency transactions, risk of changes in relative values of currencies that could be detrimental to the investment, time and effort required to learn about unfamiliar aspects of law and culture outside of the investor's home country.

Also, what comments do you have on tax law in various jurisdictions outside America where American venture capitalists might be interested in playing a role in the formation of new companies that currently do not exist?

I suspect that you have heard of micro-loans. Now, if micro-loans are a good idea, then perhaps equity is an idea that is just as good if not better. There are certainly people around the world who have religious objections to loans whenever interest payments are involved.