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A concession agreement is a negotiated contract that grants a company rights to conduct business under specific conditions. It has two main applications: first, it can be a contract between a foreign company and a government, allowing the company to operate within that country, often with incentives like tax reductions or relaxed restrictions. Second, it can provide a concessionaire exclusive rights to operate in a designated area or venue in exchange for negotiated terms. In scenarios where the government is less supportive, the company may need to offer concessions to facilitate the agreement.
