Question

Governmental actions that discourage imports and block market include all of the following except:

A) tariffs.
B) free trade zones.
C) subsidies.
D) tax incentives.
E) duties.

Answer 1

This response explains the different measures governments use to discourage imports and block markets, highlighting the exception of free trade zones.

Step-by-step explanation:

Protectionist policies include various measures that governments can take to discourage imports and block markets. This includes tariffs, import quotas, and nontariff barriers. Tariffs are taxes on imported goods, import quotas limit the quantity of imports, and nontariff barriers encompass rules, regulations, inspections, and paperwork that make it more costly or difficult to import products.

Therefore, the correct answer to the question is B) free trade zones. Free trade zones, also known as special economic zones, are designated areas where goods can be imported, manufactured, and re-exported with minimal tariffs or barriers. These zones are designed to encourage international trade, rather than discourage it like the other options.