Reinvestment

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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 ?
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.
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.
According to the new guidelines investors who do not wish to receive dividend pay-out could opt for 'Dividend Transfer Plan (DTP)' wherein the dividend amount could be re-invested in any other open ended scheme of the Mutual Fund.
By taking public control we can make sure more of this profit is re-invested in services rather than leaving the region, which is good news for the passenger and local taxpayers.
CAMPAIGNERS have vowed to fight for the proceeds of the sale of a historic Mirfield mansion to be re-invested in the town.
Our status means that we can provide value-for-money leagues, with any surpluses that we do make being re-invested in the facilities to improve them for the future.
This cannot be allowed to happen again without the wealth generated being re-invested into long-term, sustainable and home-grown industries.
This is because Welsh Water is not for profit, does not have shareholders, but is instead owned by the customer with all efficiencies made re-invested either as below inflation bill increases or to improve services to customers.
Saihi pointed out that his group has always re-invested its profits in Tunisia and it is confident to overcome the present crisis and to reach its usual performance, i.
Also, the income from mortgage notes will be re-invested into new mortgage notes.
As part of the transaction, Etancoa[euro](tm)s chief executive Ronan Lebraut has re-invested in the business and thus kept a 25% stake in it.
This has led to fears that black market profits from the looting could be re-invested in the drugs trade by the city's notorious gangs.