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The term "concession agreement" has two main interpretations in business, both involving a negotiated contract. Firstly, it refers to a contract between a foreign company and a government, allowing the company to operate in that country's market. In this context, the government might offer incentives like lower taxes or relaxed restrictions to encourage the company's presence. Secondly, it pertains to agreements granting a concessionaire exclusive rights to operate in a specific area or venue, contingent on negotiated terms. In scenarios where government enthusiasm is limited, companies may need to make concessions, such as accepting stricter conditions.