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The term "concession agreement" has two primary meanings in the business context, both referring to negotiated contracts that allow a company to conduct business under specific conditions. In one sense, it describes a contract between a foreign company and a government, permitting the company to operate within that country. In the other sense, it grants the concessionaire exclusive rights to operate in a specific area or venue, contingent on negotiated terms. Governments may offer incentives like tax reductions or relaxed regulations to attract foreign companies. Conversely, when faced with less enthusiastic governments, companies might need to offer concessions to secure these agreements.
