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The channeling of public and private resources into declining neighborhoods in a coordinated manner to combat disinvestment.
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The following article is from The Great Soviet Encyclopedia (1979). It might be outdated or ideologically biased.



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.


The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
Financial results do fluctuate depending on player trading costs and timing of payments but what's clear in these latest results is the further strengthening of our underlying financial footing and profits being reinvested in the squad and infrastructure.
'Our members have reinvested $2.7 billion in FY18 that is equivalent to FDI received during the year,' he said.
As such, direct investment earnings revealed a Q1 surge in dividends to $305.6 B thanks to a big gain in total repatriation, but a plunge in reinvested earnings to -$175.0 B as income was repatriated rather than reinvested.
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TORONTO: TDAM announced the estimated 2017 reinvested distributions for TD Exchange-Traded Funds.
The main goal of the tax exemptions for reinvested profit is making sure most of the money invested in new technology returns again to the companies it came from, said Finance Minister Kiril Minoski in an interview with a news website.
What concerns me more is: Will all the money be reinvested in a so-far flatlooking squad?
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Summary: Under the reinvestment option, the dividend declared is reinvested in
If a company reinvests the proceeds from the exercised stock options, it will increase net income because the reinvested proceeds earn a rate of return.
A PS49bn windfall for Vodafone investors within the next few weeks is expected to shake up the FTSE 100 Index as experts predict much of the money will be reinvested in UK stocks.