Consider two countries IND and BAN forming a customs union and SRI remaining outside. Country BAN can import tea from IND or SRI. The unit costs of producing tea in BAN, IND and SRI are 14, 12 and 10 respectively. Prior to the formation of customs union, a uniform ad valorem tariff of 30% is levied on tea fromIND and SRI. While the tariff on SRI continues to remain the same, the one on IND is eliminated with the formation of customs union. Does the customs union result in trade creation or diversion for this product? Discuss