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 ?
Release date- 12082019 - Kroll Bond Rating Agency (KBRA) recently issued Rating Agency Confirmation (RAC) on July 23, 2019, following a request from the collateral manager, ORIX RE Holdings, LLC (ORIX), related to the OREC 2018-CRE1 acquisition of the California Multifamily Portfolio - Crossed whole loan reinvestment mortgage asset ($24.9 million, 7.2% of the current loan pool).
Im proud to sponsor the Marijuana Opportunity Reinvestment and Expungement Act to decriminalize marijuana at the federal level, remove the needless burden of marijuana convictions on so many Americans, and invest in communities that have been disproportionately harmed by the war on drugs.
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Limited temporary deviations in the overall size and composition of the APP may occur during the reinvestment for operational reasons.
have failed to present the complete picture, omitting reinvestments that should have been included in assessing FDI data.'
The data used in this research consisted of primary data include data on: the characteristics of cocoa farmers biography, personality cocoa farmers, farmer learning cocoa, cocoa farmers capability, cocoa farmers external factors, and the size reinvestment of cocoa farm receipts and secondary data.
Further assessment will be beneficial in determining the Justice Reinvestment Initiative's full impact on state justice systems and whether it aligns with projected population reductions and cost savings.
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Of particular interest is the breakdown of the Treasury notes and bonds into groups associated with both rounds of asset purchases, the reinvestment of maturing Treasury securities, the reinvestment of maturing agency securities, and the Maturity Extension Program.
Similarly, revising Labor's prohibited transaction exemption for securities lending to restrict those securities lending arrangements that may pose unreasonable financial terms upon plans and providing more guidance, in general, about such transactions can also help plan sponsors and participants understand the risks that cash collateral reinvestment can pose to plan assets in investment options that lend securities and how to mitigate them.