Escalation

 

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Escalation

1. Regarding the structure of tariffs, see tariff escalation. 2. In the context of a trade war, escalation refers to the increase in tariffs that occurs as countries retaliate again and again.



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Escalation Clause

Escalation Clause

A clause in a lease providing for an increased rental at a future time. May be accomplished by several types of clauses, such as (1) Fixed increase - A clause which calls for a definite, periodic rental increase. (2) Cost of living - A clause which ties the rent to a government cost of living index, with periodic adjustments as the index changes. (3) Direct expense - The rent is adjusted according to changes in the expenses of the property paid by the lessor, such as tax increases. increased maintenance costs, etc.


Tariff escalation

Tariff escalation

In a country's tariff schedule, the tendency for tariffs to be higher on processed goods than on the raw materials from which they are produced. This causes the effective rate of protection on these goods to be higher than the nominal rate and puts LDC producers of primary products at a disadvantage.




 
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