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A concession agreement is a type of negotiated contract in the business world, used in two contexts. First, it refers to a contract between a foreign company and a government, granting the company the right to operate within that country under specific requirements. Second, it refers to an agreement that gives a concessionaire exclusive rights to conduct business in a designated area or venue in exchange for negotiated terms. Governments may incentivize foreign companies with lower taxes and relaxed restrictions, while companies may have to make concessions if the government is less supportive.