Examine the chart above and answer the following questions in at least 200 words.
Place your answers here The state of New Hampshire is doing relatively okay in comparison to the United Stats economy. New Hampshire relies heavily on retail trade, real estate and tourism, and health care/social assistance so the state relies heavily on seasonal changes in consumers traveling to the state. As of right now the state is not in a recession, but it is walking a fine line just like the United States economy is. There is a lag between the state of New Hampshire and the United States when it comes to recession. In previous recessions, the US lagged behind the US in 2008 when the recession hit the state extremely hard. Interestingly enough, people consider New Hampshire the litte brother to Massachusetts as they are very similar in economic growth. The state’s industries have always relied on tourism, real estate, and retail because of the reliance on visitors from other states. Recessions can hit New Hampshire located companies differently depending on their focus as a producer or seller. Interestingly Comptus sells equipment to other companies which somewhat protects the company in a state recession. Comptus creates weather equipment for other companies which means they distribute out of state. The business must focus on other regions and states economic outlooks as that will effect their business even more than New Hampshire’s economy. Comptus must focus on locking in their partners relationships so they can continue to produce and sell products at a rate that doesn’t hurt their profits too much during a recession. Obviously a state recession will effect prices on materials, but Comptus can make up for this with continued strong relations with partners as well as their small in-house operation. # 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. |