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A concession agreement is a negotiated contract that grants a company the right to operate under specific conditions. It has two primary interpretations in business: first, it can refer to a contract between a foreign company and a government, allowing the company to conduct business in that country. In this context, governments may offer incentives like tax reductions or relaxed regulations. Second, it can mean an agreement that gives the concessionaire exclusive rights to operate in a particular area or venue, in exchange for negotiated terms. In instances where the government is less supportive, the company may need to concede certain terms to obtain the necessary rights.
