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Hello everyone, I welcome you again to the class of International Business. So, in the last lecture we had started with regional economic integration right; so which also is called as trade blocks or regional economic agreements. So, the whole idea behind such agreements are you know integration is that; few countries member nations would come together and they would you know try to reduce or remove the tariff and non tariff barriers to an extent that trade becomes very smooth and the flow becomes much faster right. So, when we talked about it we also realize that is not always necessarily an advantage because sometimes if there is a trade diversion right. And in during because of the diversion if suppose somebody is you know taking buying products from a member country just because it is a member country. And then the cost you know becomes higher than what it would have been had you purchased from another supplier or seller which could have been a much low cost producer. In such a con
