Examine the chart above and answer the following questions in at least 200 words.
Place your answers here The state of New Hampshire relies on certain industries such as health care, social assistance, real estate, tourism, and retail trade. The state of New Hampshire is not currently in a recession, but like the United States overall national economy, there is definitely concern for the future as we are tip toeing closer to an recession in possibly the near future. NH has historically hit much harder than the U.S economy in past recessions. Again NH relies on certain industries such as health care, social assistance, real estate, tourism, and retail trade. Comptus is likely going to be alright in a recession because they mainly sell to other companies in other regional economies. Comptus must pay attention to their clients regional economies in the case of a recession.
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. |