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A concession agreement is a negotiated contract that allows a company to conduct business under specific conditions. There are two main interpretations: first, it can be an agreement between a foreign company and a government, enabling the company to operate within that country. In this context, the government might offer incentives like tax reductions or relaxed regulations. Secondly, it can refer to an agreement that grants a concessionaire exclusive rights to operate in a defined area or venue, typically in exchange for negotiated terms. Companies may need to make concessions if the government is less enthusiastic about the agreement.
