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A concession agreement in the business world is a negotiated contract that gives a company the right to do business with specific requirements. It can involve 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 in exchange for negotiated terms. The agreement is crucial in contracts with foreign companies, with the government offering incentives like tax breaks or relaxing restrictions. Concessions may be needed if the government is less enthusiastic about the deal.
