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 ?
9%, then the company should repurchase shares because EPS is always higher in comparison to reinvesting.
So, to help boost your share ownership, consider reinvesting the dividends back into the stock, rather than taking them as cash payments.
The traditional reasons for reinvesting, such as avoiding commissions on reinvesting proceeds from distribution, are from a different time when investors bought funds with loads or from a single mutual fund family, he reasons.
If they are interested in reinvesting the proceeds in the real estate market, the like-kind exchange provisions of Sec.
According to the Royal, this TESSA - only available for those reinvesting their cash - will pay interest of 10.
Some long-term strategies: By ignoring principal fluctuations and reinvesting the coupon over time, you can reap sizable benefits.
By selling his or her stock to an ESOP and reinvesting the proceeds in other qualified securities, a shareholder can shift his holdings from the closely held corporation to other businesses.
One such brand, a major QSR restaurant chain, is running a broadcast advertising campaign with IGT reinvesting about $300,000 back into the QSR in the form of gift card purchases.
They rarely turn over their portfolios, instead reinvesting all returns, including dividends and interest.
My father gives me annual reports that tell me what's going on with the company, whether they are reinvesting in themselves, being sold to another company or coming out with new products.
121 extends tax benefits to these middle-income taxpayers, because the gain exclusion does not depend on reinvesting the proceeds in a new home.