Which term describes a type of software that imitates a computer and then allows non-native software to run in a foreign environment?

The term that best describes software that imitates a computer and allows non-native software to run in a foreign environment is "emulator." An emulator replicates the functionality of one system on another, enabling software designed for a specific platform to run on different hardware or operating systems. For example, video game emulators allow games designed for a specific console to be played on a PC by mimicking the original hardware's behavior.

While a virtual machine also provides an environment for running applications, it usually operates more like a complete virtualization of the entire operating system rather than specifically mimicking hardware. An interpreter translates code into machine language in real-time, while a compiler translates entire code before execution. These functionalities differ from the core purpose of an emulator, which is primarily about simulating hardware and not merely providing a language translation service.