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A concession agreement is a negotiated contract giving 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 do business in the country. It can also grant exclusive rights to do business in a specific area in exchange for negotiated terms. Governments may incentivize companies with tax breaks or other benefits, while companies may need to make concessions if the government is less enthusiastic. The agreement is worked out between the company and the government of the host nation.
