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A concession agreement is a negotiated contract that allows a company to do business with specific requirements. In one sense, it involves a contract between a foreign company and a government, granting the company the right to operate in the government's country. In another sense, it grants the company exclusive rights in a specific area or venue. The agreement includes carefully negotiated terms, with governments providing incentives like tax breaks or relaxed restrictions. In cases of less enthusiasm from the government, companies may need to make concessions.
