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The term concession agreement is used in two different ways in the business world. One refers to a contract between a foreign company and a government, allowing the company to do business in that country. The other type grants the concessionaire exclusive rights to operate in a specific area in exchange for negotiated terms. These agreements are crucial for foreign companies to do business in a new country, with some governments incentivizing them through tax breaks or other benefits, while others may require concessions from the company.