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A concession agreement is a negotiated contract that grants a company the right to conduct business under specific conditions. It has two primary interpretations: first, as a contract between a foreign company and a government, allowing the company to operate within that country, often involving incentives like tax reductions or relaxed regulations. Second, it refers to an agreement that gives the concessionaire exclusive rights to operate in a specific area or venue, contingent upon negotiated terms. In situations where government enthusiasm is low, companies may need to make concessions to secure favorable terms for their operations.
