Question on international/regional business cycles (1 Viewer)

[buddyhield]

I know international business cycles are characterised by:

Characterised by:
Upswing: rising GWP, consumption, investment and decreased unemployment
Boom: high GWP, businesses operating at near full capacity, rising inflation, demand and interest rates
Downswing: falling GWP, consumption, investment and increased unemployment
Trough: low GWP, businesses not working at full capacity, falling inflation, demand and interest rates

But are regional business cycles also characterised by the same thing?

And are international and regional business cycles pretty much the same thing, except international is global and regional is in a specific region or country?

 

[Son of Thatcher]

While I didn't do Economics, a lot of this is borrowed from the Business Studies course. I'd say regional economic cycles would be pretty much the same as international ones, albeit having a far greater impact on businesses due to their consolidation in a small(er) market. Of course, the scale of the effect is smaller too.

 

[sida1049]

I know international business cycles are characterised by:

Characterised by:
Upswing: rising GWP, consumption, investment and decreased unemployment
Boom: high GWP, businesses operating at near full capacity, rising inflation, demand and interest rates
Downswing: falling GWP, consumption, investment and increased unemployment
Trough: low GWP, businesses not working at full capacity, falling inflation, demand and interest rates

But are regional business cycles also characterised by the same thing?

And are international and regional business cycles pretty much the same thing, except international is global and regional is in a specific region or country?

Yes. They are exactly the same thing but in different scales. The international business cycle includes every country, and regional business cycles only include the countries in that region (e.g. Gross World Product vs. the total GDP of individual economies in a region).

 

[buddyhield]

thanks for clearing that up guys