One of the major challenges facing developing economies is the lack of a well-developed
infrastructure.
Indicate whether the statement is true or false.
Question 2The People's Republic of China can be considered both a developing economy and part of
the Pacific Rim's market system.
Indicate whether the statement is true or false.
Question 3A country in which the law of supply and demand determines how resources are to be
allocated is said to have a command economy.
Indicate whether the statement is true or false.
Question 4Maquiladoras are an example of what the text refers to as joint ventures.
Indicate whether the statement is true or false.
Question 5Marmas Industries just built a manufacturing facility in a foreign country. They are the sole
owners of the plant, and the plant is a subsidiary of their domestic operations. This is an
example of what the text refers to as direct investment.
Indicate whether the statement is true or false.
Question 6A company in the United Kingdom sells an American-made product in the Commonwealth
and pays the American manufacturer a specified amount for each unit sold. These two firms
are operating under a licensing agreement.
Indicate whether the statement is true or false.