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The term "concession agreement" describes two related types of contracts in business. First, it refers to a contract between a foreign company and a government, allowing the company to operate in the government's country while adhering to specific requirements. Second, it grants a concessionaire exclusive rights to conduct business in a defined area or venue under negotiated terms. When dealing with foreign contracts, these agreements often involve negotiations between the company and the government, which may include incentives like reduced taxes or relaxed regulations. In less favorable situations, the company might have to make concessions to meet the government's terms.
