Reinvestment

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Reinvestment

The channeling of public and private resources into declining neighborhoods in a coordinated manner to combat disinvestment.

Reinvestment

 

repeated or supplementary investment in a given sector of the economy or in a given country using capital derived from profits. The term “reinvestment” is usually used with respect to foreign capital.

Reinvestment came to be practiced widely by the capitalist monopolies after World War II (1939–45) with the collapse of the colonial system of imperialism and the development of regional integration. Its purposes were to circumvent various forms of prohibition on the import of capital into a country or a region or to avoid payment of taxes levied in connection with the transfer of profits abroad.

Reinvestment by foreign companies in the developing countries is one of the newest methods of neocolonialism. Such reinvestment makes it difficult for the government of the developing country to monitor the movement of foreign capital, especially when the capital is reinvested in locally owned firms and enterprises.

Reinvestment by foreign companies in the developed capitalist countries is usually practiced to circumvent protectionist barriers and penetrate regional economic associations. This practice is pursued by American companies operating in the Common Market countries. The companies are trying by reinvestment to enter the European market and receive the same privileges there as the local companies.

International corporations, which have large networks of branches, joint companies, and licensing agreements to restrict certain geographic zones of the market to a particular corporation, hold a special place in the practice of reinvestment. Inroads are made into a foreign market by building new enterprises or buying up local firms. In many cases, 25 percent of the necessary capital is taken from the reinvestment funds of the parent company, 50 percent from the reinvestment funds of its branches, and 25 percent from loans on the international loancapital markets.

G. G. MATIUKHIN

References in periodicals archive ?
s annual reinvested distributions generally represent realized capital gains within the ETFs.
According to the statistics for 2015, the number of firms that reinvested their profit went up by 73.
But I fear it will become an auction meaning it will be a late deal leaving little or no time for the money to be reinvested.
The annual capital gains distributions for the RBC Target Maturity Corporate Bond ETFs generally represent realized capital gains within the ETFs and will not be paid in cash, but will be reinvested and reported as a taxable distribution.
Its most important reinvested company, Aide Solar, is in Jiangsu Province and heavily supported by the local government, Fang said.
There would be an agreement between the two countries that the money paid to Kuwait as compensation could be reinvested in Iraq in any form".
Be sure to include all reinvested dividends and reinvested capital gains in your basis," says David Kahn, partner at New York accounting firm Goldstein Golub Kessler L.
National Savings and Investments' (NS&I) savings certificates can now be reinvested over the phone following the introduction of a new service by the Government-backed provider.
And if you do nothing, your money will be automatically reinvested for another full term.
A majority of the investors reinvested their interest.
Today, most profit is reinvested in China-based operations, because the economy is still developing.
The savings could then be reinvested in more value-added activities, such as in-store, consumer-oriented branding and marketing events.