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



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.


References in periodicals archive ?
Participants and some plan sponsors are often unaware that 401(k) plan investment options are engaged in securities lending with cash collateral reinvestment and that these arrangements can pose risks to plan participants.
Governor Gramlich has chaired the board of the Neighborhood Reinvestment Corporation, a partnership that has generated more than $8.
Because of FSP FAS 109-2, Accounting and Disclosure Guidance for the Foreign Earnings Repatriation Provision within the American Jobs Creation Act of 2004, companies, in applying FAS 109, now have more time to evaluate the AJCA's effect on their plans for reinvestment or repatriation of certain foreign earnings.
Evans noted that a payment may be able to be structured as a permitted reinvestment if the CFC's plan is qualified under section 401(a) of the Code.
121 exclusion have four years to complete the reinvestment.
Congress created Neighborhood Reinvestment 26 years ago to work with community organizations involved in neighborhood revitalization activities.
However, over time, it will normally lose competitive position The key to value creation becomes determining if and when capital reinvestment should he made.
Dividend reinvestment plans are a consistent, long-term way of saving to accumulate shares and wealth,'' said Vita Nelson, editor and publisher of The Money Paper.
Earlier this year at a "learning workshop" for congressmen, staff, and national interest groups, members of the Seventh American Forest Congress' Communities Committee helped introduce these policy issues by breaking them down into four areas - process, stewardship, reinvestment, and monitoring.
The long-term debt payment, dividend payout and reinvestment ratios provide further insight for investors and creditors into the individual importance of these three components.