Final answer:
Customs duties, or tariffs, are a government policy that discourages imports by taxing imported goods, making them more expensive and less competitive domestically. This is a form of protectionism aimed at protecting local industries and jobs. NAFTA and Free trade zones, by contrast, are designed to reduce barriers and encourage trade.
Step-by-step explanation:
The subject of the question relates to government policies that impact international trade, specifically those that discourage imports. Among the options provided, Customs duties, also known as tariffs, are a government policy designed to discourage imports by imposing a tax on imported goods. This makes foreign products more expensive and less competitive in the domestic market, thereby protecting domestic industries from international competition. On the other hand, policies like Subsidies and Tax incentives generally encourage domestic production and can indirectly affect imports by strengthening domestic businesses. NAFTA (North American Free Trade Agreement) and Free trade zones are agreements and areas designed to encourage trade by reducing trade barriers, not discourage it.
Protectionism is the term used when a government legislates policies to reduce or block international trade in order to shield domestic industries. These protectionist policies can take several forms, including tariffs, import quotas, and nontariff barriers. Non-tariff barriers are methods such as rules, regulations, inspections, and paperwork that increase the cost or difficulty of importing products. Governments implement these policies with the aim of promoting domestic businesses and saving domestic jobs that may be threatened by cheaper foreign imports.
Organizations like the World Trade Organization (WTO) exist to help regulate trade policies and work towards reducing barriers to trade. However, despite international efforts to reduce trade barriers, issues like the race to the bottom phenomenon, where production locates in countries with the lowest standards, continue to challenge the balance between protecting domestic industries and encouraging free trade.