The process whereby countries in a geographic area cooperate with one another to reduce or eliminate barriers to the international flow of products, people, or capital is called .
regional economic integration
protectionism
mercantilism
economic nationalism

Regional economic integration is considered as the method of reducing barriers towards the functioning of products trading together with the relationship with people and capital across a geographic area.

Explanation:

The imports and exports of all the countries are vested with a favorable system of balance of trade across all international boundaries. But it can be achieved only with the mutual cooperation of all member countries involved in trading of the international flow of products. Especially the developed countries should try to reduce the import nor the export tariffs to considerable effect.

It will additionally help to increase the mobility of laborers and also the rate of investing capital towards developing the sales level of volume of international markets. Reducing the trade barriers will help developing countries to earn more foreign exchange  

the 2nd option is the answer

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