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A concession agreement is a type of negotiated contract in the business world with two nuanced meanings. Firstly, it involves a contract between a foreign company and a government, allowing the company to operate within that country's borders. Secondly, it can grant exclusive rights to a concessionaire to conduct business in a specific area or venue under negotiated terms. Governments may offer incentives like tax reductions or relaxed restrictions to attract foreign companies, while companies might need to make concessions if the government is less favorable.
