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A concession agreement is a negotiated contract that allows a company to operate under specific conditions. It has two primary interpretations: first, it refers to a contract between a foreign company and a government, enabling business operations within that country. Second, it grants exclusive rights to a concessionaire to operate in a designated area or venue, based on negotiated terms. In international contexts, these agreements often involve governments incentivizing companies to invest by offering tax reductions or relaxed regulations. Conversely, if the government is less supportive, the company may need to make concessions to secure the agreement.