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A concession agreement is a negotiated contract that grants a company the right to do business under specific requirements. It has two main interpretations: first, it involves a contract between a foreign company and a government, allowing the company to operate within that country, often with government-provided incentives like tax reductions or relaxed restrictions. Second, it can refer to an agreement that gives the concessionaire exclusive rights to conduct business in a designated area or venue in exchange for negotiated terms. In situations where the government is less supportive, the company may need to make concessions to secure the agreement.
