A Canadian water treatment company decides to partner with a local Chinese firm and both firms will invest to create a market for a unique water treatment product. This relationship is referred to as a

Question

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A joint venture involves two or more firms creating a separate entity together to undertake a specific business activity. In this case, the Canadian and Chinese firms are partnering to create a market for a unique water treatment product, which fits the definition of a joint venture. The other options (licensing, local manufacturing, direct exporting) do not involve the creation of a separate entity between the firms.

A Canadian Water Treatment Company Decides to Partner with a Local