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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 for doing business in a country. Alternatively, it grants the exclusive right for business in a particular area. The agreement includes carefully negotiated terms, such as taxes, restrictions, and incentives. The government may incentivize companies with tax reductions or other benefits. If the government is less enthusiastic, the company may need to make concessions.
