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A concession agreement is a type of negotiated contract that gives a company the right to do business with specific requirements. It can refer to a contract between a foreign company and a government allowing the company to operate in the country. Alternatively, it can grant the exclusive right to do business in a particular area or venue. These agreements are carefully negotiated, with governments sometimes offering incentives like lower taxes or relaxed restrictions. If the government is not as enthusiastic, the company may need to make concessions to secure the deal.