Final answer:
A consortium is the partnership of two or more companies creating a separate legal entity to do business in a new market. It's a collaboration distinct from franchises, licenses, or direct foreign investment, pooling resources for shared ventures.
Step-by-step explanation:
The term that refers to a partnership of two or more participating companies that have joined forces to create a separate legal entity to facilitate doing business in a country where none of the participants are currently active is called a consortium. This arrangement allows companies to collaborate and leverage each other's strengths to enter new markets and undertake substantial projects without forming a single corporate entity. Unlike a franchise or license arrangement which involves one party granting another the right to use its brand, products, or services, a consortium usually involves a pooling of resources for a particular venture, often for a limited time or purpose.
Corporations, partnerships, and sole proprietorships represent the employer side of the market, while non-profits, cooperatives, professional associations, and government entities also contribute to the economy. In addition, multinational corporations represent businesses that control production in multiple countries, sometimes evolving from smaller business structures like partnerships through expansion and incorporation.