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A concession agreement is a negotiated contract between a company and a government, allowing the company to do business in a specific country or area with certain requirements. It can also grant the concessionaire exclusive rights in exchange for negotiated terms. In the case of foreign contracts, the agreement is worked out between the company and the government, with the government potentially incentivizing the company through tax breaks or other incentives. If the government is less supportive, the company may need to make concessions as well.
