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A concession agreement is a negotiated contract allowing a company to do business with specific requirements. It can refer to a contract between a foreign company and a government, granting the company the right to operate in the country. Alternatively, it can give the concessionaire exclusive rights in a specific area in exchange for negotiated terms. These agreements are crucial for foreign companies seeking to do business in a nation, with governments offering incentives like tax breaks or relaxing restrictions to attract businesses. In cases of less enthusiasm from the government, companies may need to make concessions.
