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A concession agreement is a negotiated contract that allows a company to do business with specific requirements. There are two meanings in the business world. First, it is a contract between a foreign company and a government to do business in the country. Second, it grants exclusive rights to do business in an area in exchange for negotiated terms. Governments may offer incentives, such as tax breaks, to encourage business. Companies may need to make concessions in negotiations with less enthusiastic governments.
