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 ?
02 permits expenditures for compensation and benefits for existing workers to be considered qualified reinvestments as worker hiring and training expenses.
parent followed by a contribution of the funds to a second CFC would be a qualified reinvestment where the U.
Instead of investing in new capacity or facility reinvestment programs, the leading companies have used funds for consolidation.
However, over time, it will normally lose competitive position The key to value creation becomes determining if and when capital reinvestment should he made.
The long-term debt payment, dividend payout and reinvestment ratios provide further insight for investors and creditors into the individual importance of these three components.
Comparing this ratio to the reinvestment ratio provides insight into the sufficiency of a company's reinvestment and the maintenance of its asset base.
23 /PRNewswire/ -- Evergreen Enterprises will release Version 2 of its computer program, Dividend Reinvestment Plan Portfolio Tracker, in early April.
Any future substitute investment or reinvestment is limited to non-callable obligations issued or guaranteed by the U.
Proceeds of the Kentucky Economic Development Finance Authority's health system revenue bonds series 2000 (Norton Healthcare, Inc), monies transferred from the debt service reserve fund securing the refunded bonds and sums paid by the escrow reinvestment agreement and option agreement provider (Morgan Guaranty Trust Company of New York) were used to refund the bonds.
Tomkinson, chief executive officer, Wednesday announced that the Board of Directors has approved an amended and restated Dividend Reinvestment and Stock Purchase Plan, (the "Plan").
21, 1996--Fidelity Investments today introduced a comprehensive equity dividend reinvestment service offering its broker-dealer and retail brokerage customers automatic reinvestment of cash dividends and capital gains into additional shares of stocks and closed-end mutual funds.
COLUMBUS, Ohio--(BUSINESS WIRE)--April 24, 1995--Glimcher Realty Trust (NYSE:GRT) has registered with the Securities and Exchange Commission 250,000 common shares of beneficial interest for issuance under its Distribution Reinvestment and Share Purchase Plan ("DRIP").