Final answer:
A joint venture refers to two or more companies forming a separate legal entity to conduct business internationally, sharing costs, risks, and profits.
Step-by-step explanation:
The joint venture refers to two or more participating companies joining forces to create a separate legal entity to facilitate doing business in the international arena. Unlike indirect exporting, a franchise, or a license arrangement, a joint venture involves a partnership where each party brings something to the collaboration, sharing the costs, risks, and profits. The direct investment agreement is different from a joint venture in that it typically involves one company making a significant investment in another country, like purchasing a firm or establishing operations, rather than collaborating with a local partner.