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A concession agreement is a type of contract that allows a company to do business with specific requirements. It can be between a foreign company and a government, granting the company the right to operate in the country. Alternatively, it can grant exclusive business rights in a specific area or venue in exchange for negotiated terms. Governments may offer incentives like tax breaks or relaxed restrictions to encourage foreign business, or the company may need to make concessions for less enthusiastic governments.