Examine the chart above and answer the following questions in at least 200 words.
Place your answers here New Hampshire is doing alright currently especially when compared to the national average. We have a lower unemployment rate than the national average and growth in the new building job (employees) chart show that the NH economy is growing. But with the state of the countries economic inflation price increases for many prices this could change. NH is not in a recession however just like the country they are walking on a thin line and could enter into a recession rather quickly if a significant problem soon arises. Although NH has not been part of every recession the 2008 and 90-92 recessions hit NH very hard. According to the known data NH will usually go into a recession shortly after the country does. Hew Hampshire’s top three industries are tourism, health care, and high tech industries. Tourism is a major part of New Hampshire economy as people come for the natural landscape, hiking, skiing, and the leaves changing color. Health care has also taken a major role in NH’s economy as NH faces an aging population so more of these services are needed. High tech industries have also grown large because it is the planned industry to fix the gap which was made when milling centers left previously in our state history. Comptus if a recession is likely should focus even more heavily on exported goods. They should do this as it wouldn’t require a major change. In their response it already shows fifty plus percent of their revenue is from international sales. Comptus is already a very flexible company due to low staff and multilocational production method. They already sell most of thier merchandise through distributors and don’t really hav emuch visibility to regional activity. In light of this if non regional customers are still buyig their products they don’t need to worry much about regional sales. # Business response to the questionnaire
Question to the businesses A regional economic cycle is not perfectly synchronized with its national counterpart, although it tends to move up and down with the national economy. In addition to the broader national economy, two other factors influence a regional economy: the national cycle of its most important industries and its internal growth cycle associated with construction swings. There are two different perspectives to consider in analyzing a regional economy: when a company sells into a distinct local market and when a company produces in a local market and sells into a national or global market.
Please, discuss how the regional economy affects your business and what you do in response.
Response from businesses
| Business | Response from Business |
|---|---|
| Graponne | We are a regional business, so we are more impacted by what is going on in northern New England. From my perspective, the ’08-’09 recession was not as bad in New England as was the ’90-’92 downturn. New Hampshire was hit much harder in the early ’90’s. Many of NH’s largest banks failed in 1992, |
| Bank of New Hampshire | Our primary operating area is NH, and to a lesser extent all of New England, so regional economic cycles are important. We monitor economic data on the state and regional level – Fed in Boston puts out excellent information – and respond accordingly, |
| Comptus | We have no direct regional sales. 50%+ of our revenue is from International sales. Almost all domestic sales are through large distributors, so we have very limited visibility to regional activity. |