What is place in module lookup

https://basarat.gitbook.io/typescript/project/modules/external-modules#what-is-place

else if the place is a folder and there is a foo/package.json and a file specified in the types key in the package.json that exists, then hurray! else if the place is a folder and there is a package.json and a file specified in the main key in the package.json that exists, then hurray! Does the second line here (4th in the book) imply foo/package.json?