Formula racing, or single-seat automobile racing in which the designs of the cars are strictly regulated, is governed by FIA.  The organization, located in Paris, France, is the international governing body for much of worldwide automobile racing, including almost all racing outside of the United States.  Periodically, FIA sets technical regulations for building, maintaining, and racing many different classes of cars.  Vehicles used in Formula One (F1) racing -- the most important form of racing outside the United States -- are considered the highest form of single-seat racing cars due to the sophistication of construction and ultimate speed.  Designed for road racing, F1 cars can accelerate and brake quickly.  FIA also regulates classes for other formula cars. There are slower and less sophisticated single-seat cars competing in such categories as Formula Two (F2), Formula Three (F3), Formula Atlantic, Formula Renault, and Formula Ford, in descending order.
    For many years FIA's rules over F1 racing were unchallenged, but beginning in the early 1970s, its sole authority was challenged by other bodies.  The Formula One Constructors Association (FOCA), located in London, England, led the challenge.  FOCA was formed by a group of constructors building cars for F1.  According to an agreement drafted in 1982 between FIA and FOCA (revised, 1987; due for revision, 1997), the latter controls the distribution of funds generated by F1 racing, so that each competing team has enough money to race in the next competition.
    For much of automobile racing history, there were no restrictions on technological development, so F1 cars were the most sophisticated, most technologically advanced racing vehicles possible.  Beginning in the early 1990s, however, FIA began slowing introduction of new materials, systems, and electronics to F1.  A principal reason for these restrictions was FIA's unwillingness to allow computers to plan too important a role in functions it believed should remain under the control of the driver, such as braking.  Many innovative systems available in today's street cars, such as antilock brakes, a computerized system that decreases the chances of skidding while braking, are prohibited in F1.  Another factor in the limitation of computer use is the desire to hold down high costs of innovation that favor large, heavily financed racing teams over smaller, less well-financed teams.  Despite these regulations, F1 cars are still considered to be the height of single-seat racing car construction, and F1 races also are considered by many to be the most glamorous automobile racing events in the world.  One of the best F1 drivers in recent history is Michael Schumacher.
    The biggest problems in automobile racing both in the United States and internationally are caused by the costs of racing competitively.  Drivers receive large sums of money from team owners, and the cost of building a car capable of winning is often enormous, up to several hundred thousand dollars.  To win a racing series, such as the Indy car championship or the Winston Cup, requires several million dollars -- for salaries; construction; engine-rental, and maintenance payments; and other related costs.  With revenues from large corporate sponsorships, the sale of television broadcast rights, and the selling of public stock and other financial procedures, creating a team capable of winning is possible.  But, in recent years, operating profits for series and race courses have diminished, with increasing operating costs, increased costs of meeting government regulations on insurance and environmental codes, and higher taxes in such forms as local levies on ticket, parking, and concession sales.  Corporate sponsorships are threatened by the condition of the overall economy.
    Another issue is the extremely fast rate of technological change possible in automobile racing.  Early in the sport's development, race cars changed gradually, often with years intervening between significant innovations.  over time, however, technological change accelerated, as it became increasingly common for competitors to actively seek technological superiority, if only for a short time.  This search is legal, but costly, as research, technical staff, and implementing change itself (requiring the physical construction of new cars or components) add a great deal to the cost of running a race car and some of the wealthy F1 teams change stuff on the car every race.