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Question
country c used to be a command economy but is now in the process of altering its economic system to embrace free - market capitalism. it is privatizing businesses that the state once owned, granting more political and economic freedoms, boosting trade with western europe, and seeking foreign investment. its gdp is improving and has reached $9,000 per capita. its also improving its transit and financial infrastructure. independent banks and a stock market have just been created with imf loan assistance.
which factor places this nation in the transitioning category?
it has a rising gdp.
it has recently increased trade with western europe.
it is shifting from a planned to a free - market economy.
multinational corporations operate within its borders.
The nation is transitioning from a command to a free - market economy. The option "It is shifting from a planned to a free - market economy" directly describes the economic transition process (moving from a planned/command economy to free - market), while other options like rising GDP or increased trade are results of the transition, and multinational corporations operating within borders is not a core factor defining the transition category.
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It is shifting from a planned to a free - market economy.