Reinvestment

(redirected from Re-Invested)
Also found in: Dictionary, Financial.
Related to Re-Invested: Reinvested Dividends

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 ?
In the past six years, Overseas Investors Chamber of Commerce and Industry members have re-invested US$ 10.4 Billion, whereas FDI inflow in the country was only US$ 11 Billion FDI, which reflects the extreme confidence of the leading foreign investors, who are already operating here, on opportunities in Pakistan.'
Geoff Walsh, director of capital, estates and facilities, welcomed the opening and said: "This is a fantastic investment for the health board, especially as profits will be re-invested into hospital services.
All proceeds are re-invested in social programs for women's empowerment.
"The proceeds will be re-invested to drive sustainable growth for our members, and all 3,808 colleagues will transfer to McColl's on the same terms and conditions."
"The proceeds will be re-invested to drive sustainable growth for our members and I'm delighted all 3808 colleagues will transfer to McColl's on the same terms and conditions."
So far the fund houses had been providing growth option and dividend option under ELSS products including 'Dividend Reinvestment Sub-Option' wherein the dividend amount re-invested is subject to lock-in period of three years from the date of re-investment.
All of BlackGold founders' capital will remain invested in the business and the majority of the proceeds from this deal will be re-invested in the funds.
In the first half, Britain's biggest pub landlord sold off 129 pubs, raising PS42m, of which all but PS1m was re-invested in its estate.
Mr Shatter added: "This project is expected to create up to 200 specialist, professional, skilled and unskilled jobs at its peak and industry experts would also say the majority of the [euro]35million will be re-invested in the local economy."
Sue Hine, speaking on behalf of ARCC, explained that not only will the consortium promote close involvement of local services in any future provision it will also ensure that any financial benefits arising from the contract will be re-invested locally.
Art lovers can buy bonds in exchange for the art and proceeds will be re-invested to support North East communities.