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A concession agreement is a negotiated contract that gives a company the right 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 be an exclusive agreement granting the concessionaire the right to operate in a specific area. The terms are carefully negotiated, with governments sometimes offering incentives like tax breaks. If the government is less enthusiastic, the company may need to make concessions.
