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A concession agreement is a negotiated contract that allows a company to conduct business under specific conditions. It has two primary meanings: firstly, it involves a foreign company entering into a contract with a government to operate within that country's jurisdiction. Secondly, it grants the concessionaire exclusive rights to operate in a particular area or venue under negotiated terms. Governments may offer incentives like tax reductions or relaxed regulations to attract foreign companies, while companies may be required to make concessions if the government is less favorable.
