What is defined as "the withdrawal of investments from activities (and regions) that yield low rates of profit in order to reinvest in new activities (and new places) "?

Question

Haiden Carrillo

Business

15 January, 06:48

What is defined as "the withdrawal of investments from activities (and regions) that yield low rates of profit in order to reinvest in new activities (and new places) "?

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Kaylen Cruz · Answer 1

The given statement is defined as creative destruction

Explanation:

It is defined as a creative destruction. Generally, creative destruction means when the old processes have been withdrawn so as to carry on new investment process or to carry out an innovative idea. The outdated process is replaced with the new process or an innovative process. This concept was firstly given by Joseph Schumpeter who coined it in his book.