Moon Flower Cosmetics Company's executives are aware that their Asian customer base is interested in advanced skin care treatments beyond Moon Flower's traditional herbal and organic compounds.Moon Flower and a large American chemical company are in discussions to create a 50-50 partnership in a new firm, which would create skin care treatments based on innovative chemical formulations that would be marketed both in Asia and the United States.Beyond being a cross-border alliance, this partnership can be called a(n):

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A joint venture is a business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, such as creating a new firm, and typically involves shared ownership, shared returns and risks, and shared governance. In this case, Moon Flower and the American chemical company are creating a new firm with a 50-50 partnership, which is characteristic of a joint venture.

Moon Flower Cosmetics Company's Executives Are Aware That Their Asian