To enable arbitration. So that we can come together. To take into account other possibilities. Concession contracts can also be used for risk management. Suppose a country invests a significant amount in the production of a single product. This country will then have a high idiosyncratic risk related to the price of this raw material. For example, the governments of Brazil and Mexico have invested heavily in state-owned oil companies. The value of their assets and income fell significantly when the price of oil fell in 2020. Countries that grant concessions may lose revenue from concession fees, but they do not risk as much capital.

Sellers work on a smaller scale under concession agreements granted by local governments, businesses or other property owners. This activity may include restaurants and retail at major airports, vendors at public fairs, or selling food and beverages from booths at State Parks. Concession contracts are sometimes used to exploit other nations. For example, in the nineteenth and early twentieth centuries, foreign countries and companies forced China to grant various concessions. These concessions have given foreign companies the right to develop and operate railways and ports in China. In addition, citizens of other countries often enjoyed extraterritoriality as part of their concessions. Extraterritoriality meant that foreign laws and courts would settle disputes between Chinese and foreigners in concessions. Of course, the decisions of these courts have tended to oppose Chinese companies and consumers. a: reaching an agreement or an agreement by mutual concession For example, there is a concession agreement between the French and British governments and two private companies concerning the Channel Tunnel. British Channel Tunnel Group Limited and France-Manche S.A. operate the Channel Tunnel, often referred to as “Chunnel” under this agreement.

The tunnel connects the two countries and allows the transport of passengers and goods between them. It is 31.5 miles long, with 23.5 miles under the English Channel. The underwater tunnel is therefore the longest in the world and an important part of the public infrastructure. The more attractive and profitable a concession is, the less likely it is that a government will offer tax advantages and other incentives. Here, I was baffled by the verb “compromise,” because it usually evokes for me “a kind of reciprocal piece.” Concession agreements, also known as concession agreements, cover different sectors and are available in many sizes. These include mining concessions worth hundreds of millions of dollars, as well as small food and beverage concessions at a local cinema. Regardless of the type of concession, the concessionaire must normally pay the party granting the concession fees. These fees and the rules that allow them to change are usually described in great detail in the contract. Adaptation or settlement by partial renunciation of principles, positions or rights: payment by convention A common area for concession agreements between governments and private companies involves the right to use certain parts of public infrastructure, such as railways.B. .