Examine the chart above and answer the following questions in at least 200 words.
Place your answers here
Over the last decade New Hampshire economic situation has become more and more like its bigger and richer neighbor, Massachusetts. The data even shows that the high-value-added top industries have grown stronger in New Hampshire than Massachusetts. Overall, it is looking good for New Hampshire. As far as recession goes, we are not in one now but right now everything points at that we are heading in to one very soon.
Looking at the data I can confirm that New Hampshire’s economy and the American economy goes hand in hand. As America went in to a recession, New Hampshire also went in to one. The timing is a bit lagging, since the lowest point of the market is at the end of the recession and it takes a bit longer to recover.
The top 3 industries in New Hampshire are the “Real Estate and Rental and Leasing”, “Health Care and Social Assistance”, and “Management of Companies and Enterprises”.
The textbook does not mention that much important for a business such as a bank like the Bank of New Hampshire. Though as I have mentioned in my earlier work, I would recommend the bank to have loans available that would be beneficial for both customers and the bank in a recession. They should have more liquidity assets available in case of emergency.
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. |