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Sandhi is a common Linguistic feature in many languages, which happens at word boundaries.

Assimilation is feature progressively/regressively affecting the other segment boundary.

ðɪs ʃɪp becomes ðɪʃ ʃɪp and ðiːz ʃɪps becomes ði:ʒ ʃɪps

Is that , sort of sandhi or assimilation?

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Neither term would be wrong. They aren't mutually exclusive: sandhi is broadly defined as a phonological process crossing word boundaries, while assimilation is broadly defined as a phonological process making things more similar. So if a process makes things more similar across word boundaries, it's both sandhi and assimilation.

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