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You are the manager of an independent manufacturer that sells protective cases for the Samsung Galaxy. Samsung produces half of its phones at a plant near Hong Kong and the other half at a plant located near Shanghai. Both plants are running at full capacity. You have just learned that rioting workers have destroyed the Samsung plant near Shanghai and it will take at least a year before the company can construct a new plant to produce additional Galaxies. Explain how this news will this affect the amount of inputs you order for your own manufacturing activities? Explain how it will affect the number of employees you schedule? All other things being equal, what will happen to prices of the Galaxy and the iPhone? Why?

Financial Management, Finance

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