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A concession agreement is a negotiated contract that allows a company to conduct business under specific requirements. It has two primary meanings: first, it is an agreement between a foreign company and a government, permitting the company to operate in that country. Second, it refers to an exclusive right granted to a concessionaire to conduct business in a designated area or venue, based on negotiated terms. In the context of foreign businesses, these agreements often involve governments providing incentives like tax reductions or relaxed restrictions, while companies may need to make concessions if the government is less supportive.