Final answer:
NAFTA is the regional trading agreement that allows Aerocorp to conduct free trade in North America, reducing trade barriers, and fostering economic growth.
Step-by-step explanation:
The regional trading agreement that allows Aerocorp to engage in free trade in the context of the provided options is NAFTA (North American Free Trade Agreement). NAFTA was established to promote trade between Canada, Mexico, and the United States by reducing trade barriers such as tariffs and to increase investment opportunities. The agreement facilitated easier operations for multinational corporations (MNCs) across these countries, helping improve the standard of living by promoting economic growth.
While other agreements such as ASEAN, EU, and MERCOSUR also support trade liberalization, they are geographically tied to Southeast Asia, Europe, and South America, respectively. NAFTA is specifically connected to North America, which would be relevant if Aerocorp operates within these boundaries.