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A concession agreement is a negotiated contract that allows a company to operate under specific conditions. It has two primary meanings in the business context. First, it refers to a contract between a foreign company and a government, enabling the company to conduct business in that country. Secondly, it grants a concessionaire exclusive rights to operate in a designated area or venue, under mutually agreed terms. Governments may incentivize foreign companies by reducing taxes or relaxing regulations, while companies might have to make concessions if the government's support is limited.
