What relationship exists between two states whereby each extends privileges of licensure to licensees of the other state?

The correct choice, reciprocity, refers to a formal arrangement between two states whereby each state recognizes and grants licensure privileges to licensed professionals from the other state. This relationship allows licensed individuals to practice in both states without needing to obtain a separate license, thereby facilitating easier mobility for professionals across state lines. Reciprocity is particularly prevalent in various professions, such as nursing, teaching, and engineering, where mutual recognition of licensure can help to address workforce shortages and enhance professional opportunities.

While mutual agreement, affiliation, and cooperation might describe various forms of collaboration or understanding between states, they do not specifically capture the formal, legal recognition of licensing privileges that characterizes reciprocity. Mutual agreement might involve negotiation on broader matters, while cooperation could relate to general collaboration on policy issues. Affiliation implies a connection or association but lacks the focused legal implications specific to licensure extensions found in reciprocity.