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A concession agreement is a negotiated contract allowing 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. In another sense, it grants exclusive rights in a specific area in exchange for carefully negotiated terms. Foreign companies work out concession agreements with governments to receive tax breaks, relaxed restrictions, or other incentives. If the government is not as enthusiastic, the company may need to make concessions.
