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A concession agreement refers to a negotiated contract that grants a company the right to conduct business under specific conditions. It is understood in two contexts: first, as a contract between a foreign company and a government, allowing the company to operate within that country's jurisdiction. In this case, governments might offer incentives like tax reductions or relaxed regulations to attract foreign businesses. Second, it can refer to an agreement that gives a concessionaire exclusive business rights in a specified area or venue, often involving carefully negotiated terms. In both instances, the agreement requires trade-offs from the involved parties.
