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The term "concession agreement" refers to a negotiated contract in two contexts. First, it describes a contract between a foreign company and a government, allowing the company to operate in that country under specific conditions. Second, it denotes an agreement granting a concessionaire exclusive business rights in a designated area or venue, subject to negotiated terms. In dealings with foreign companies, these agreements often involve governments offering incentives like tax reductions or relaxed restrictions. Conversely, if a government is less favorable, the company may need to make concessions to proceed with the agreement.
