Economics
Price escalation is the increase in price that occurs when a good is exported to a foreign market due to shipping costs, tariffs and distribution channels.Contracts
A price escalation clause is a term in a contract that allows a price to be increased or renegotiated if prices for inputs increase. For example, a construction contract that can be renegotiated if the cost for materials rise beyond a certain point.| Overview: Price Escalation | ||
Type | ||
Definition (1) | A difference in price for an identical good in different markets due to supply chain variations such as shipping costs, tariffs and distribution channels. | |
Definition (2) | A contract term that allows prices to be increased or renegotiated if the cost of an input rises beyond a certain point. | |
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