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A concession agreement is a negotiated contract giving a company the right to do business with specific requirements. It can refer to a contract between a foreign company and a government, or an agreement granting exclusive rights in a particular area. In the business world, a concession agreement is worked out between the company and the government of the nation where it wishes to do business. The government may incentivize the company with tax breaks, relaxed restrictions, or other benefits. If the government is not as supportive, the company may need to make concessions.
