Foreign direct investment is the primary engine of economic development. The factors influencing a country's governmental policy of foreign direct investment at an international level constitute a wide and complex subject. This subject in my country,Taiwan, Republic of China, has been receiving increasing attention, for we now face the problems of balance of payments deficits, how to strengthen the N.T. dollar and improve the functions of foreign direct investment etc. In early 1970, the United States had problems similar to those which my country faces now; therefore, I will examine the "Foreign Direct Investment Regulations" (FDIR) of U.S. enacted in 1968 to evaluate how the United States coped with the problems now facing my country. I will analyze circumstances under which the United States implemented and revoked the FDIR as well as review the FDIR's contents and effects.