Spillover effect

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Spillover effects are externalities of economic activity or process upon those who are not directly involved in it. Odors from a rendering plant are negative spillover effects upon its neighbors; the beauty of a homeowner's flower garden is a positive spillover effect upon neighbors.

In the same way, the economic benefits of increased trade are the spill over effects anticipated in the formation of multilateral alliances of many of the regional nation states: e.g SARC (South Asian Regional Cooperation), ASEAN (Association of South East Asian Nations)