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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 do business in the country. Alternatively, it can grant the concessionaire exclusive rights in a specific area in exchange for negotiated terms. Governments may incentivize companies with tax breaks or relaxations, while companies may need to make concessions if the government is less enthusiastic.
