Definition:
In the world of business, the term "reciprocal" refers to a relationship which is mutual, or to the benefit of both parties, or in which both parties give up something to get something from the other. The term "reciprocity" describes a relationship of mutual benefit, exchange of favors or grants by each party to the other.
For example, many states have reciprocal agreements to allow attorneys, CPAs, and other professionals to practice in their state, in return for having professionals licensed in their state to be able to practice in the other state. A reciprocal relationship exists between the bar associations of many U.S. states.
