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 ?
Otherwise, they will have to pay the additional 10% tax, which is discouraging re-investment.
For those who selected the re-investment option, the dividends will be reinvested on 7th August, 2016 and for those who have selected the cash payout option, the proceeds will be credited into their NBAD bank account by the 22nd August, 2016.
The changes are part of its nationwide re-investment scheme in new stores and several other stores in the north west have also been earmarked for closure in the last week.
However, as part of a rolling programme of re-investment at Gisborough Hall, The Safe has been fully renovated and is now home to unique wines and whiskies.
The fund, which was launched in 2013, sees 50p added to the price of a ticket to raise money for re-investment back into the theatre.
Included in the text is how it looked in 1991, its evolution through 2015, including the internationalization of its economy, leadership, governance, policy, re-investment and urban regeneration, the city as a corporate hub, the office market, real estate, homes and housing, and its transport and infrastructure platform, as well as its future, challenges, and solutions in business and governance and its relationship with the rest of the UK.
Chief executive John Waterworth said: "We had a very successful 2014 and this significant re-investment shows our confidence in our customer growth in 2015 and beyond.
"Although we are looking outwards, the primary focus is on promoting re-investment by businesses already present here.
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.
Tax saving funds may soon withdraw the dividend re-investment option as the Association of Mutual Funds in India (Amfi) has issued a best practice circular asking fund houses to discontinue the option under equity-linked saving schemes (ELSS).
Our first "Lift Truck User Survey" was ready for the August 2010 issue, so we decided to build on the theme to inspire re-investment, complete with case studies, reports on the newest equipment, and the latest best practices illustrating how savvy end users were using lift trucks as platforms for technology to improve efficiencies despite the budget crunch.
The solid growth yr after yr allowed for re-investment of capital into the rental inventory increasing it to approx $500K, which in turn increased profit marins (shown in financials) Turn-key, professionally structured with office mgr, recept/secretary, sales person, wh mgr, & long term staff in place.Good for e-2 visa