In investment negotiations, what is a 'concession'?

In the context of investment negotiations, a 'concession' refers to a compromise made by one party to move closer to an agreement with the other party. This often involves giving up something of value to facilitate a resolution that both sides can accept. When negotiations are taking place, each side typically has specific goals and needs, and concessions are a critical part of the negotiation process to achieve a mutually beneficial outcome.

As parties negotiate, they may have to adjust their positions and make concessions to find common ground. This could involve altering terms, such as pricing, timelines, or other deal components, to accommodate the interests of the other side. Successful negotiation often hinges on the ability to effectively communicate and recognize when a concession can aid in achieving the overall objectives of both parties.

The other options do not accurately represent the concept of a concession. A final agreement signifies the conclusion of negotiations, while a non-negotiable aspect indicates something that cannot be changed, which runs counter to the idea of making a concession. An initial offer signifies the starting point of negotiations rather than an adjustment made during the process.