 A reinforcing loop is a cycle in which the effect of a variation in any variable propagates through the loop and returns to the variable reinforcing the initial deviation i.e.if a variable increases in a reinforcing loop the effect through the cycle will return an increase to the same variable and vice versa.A balancing loop is the cycle in which the effect of a variation in any variable propagates through the loop and returns to the variable a deviation opposite to the initial one i.e.