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A concession agreement is a negotiated contract that allows a company to operate under specific requirements. It has two main interpretations in the business context. Firstly, it involves a foreign company entering a contract with a government to conduct business in that country, often including incentives like reduced taxes or relaxed regulations from the government. Secondly, it refers to an arrangement where a concessionaire is granted exclusive rights to operate in a specific area or venue, contingent upon agreed terms. In situations where the government is less favorable, the company may have to offer concessions to secure the agreement.
