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The term "concession agreement" refers to a negotiated contract allowing a company to conduct business under specific conditions. It has two main interpretations: one defines it as a contract between a foreign company and a government, enabling the company to operate within that country's jurisdiction. The second interpretation encompasses agreements granting the concessionaire exclusive rights to operate in a certain area or venue, subject to negotiated terms. In international contexts, governments may offer incentives like tax reductions or relaxed regulations to attract foreign companies. Conversely, companies might need to make concessions if the government is less inclined to provide favorable terms.
