What is the purpose of antiboycott regulations?

The purpose of antiboycott regulations is to prevent US firms from being utilized as instruments to enforce foreign policies that may be contrary to US interests or foreign policy. These regulations aim to mitigate the risks of discrimination against certain countries or entities by prohibiting companies from complying with international boycotts led by foreign nations that the US does not support.

By enforcing antiboycott measures, the government seeks to uphold its own trade policies and promote fair competition, thus protecting the interests of US businesses. This prevents foreign countries from exerting undue influence on US companies and ensures that US firms can operate globally without being coerced into politically motivated actions.

Focusing on the other options, they do not accurately reflect the primary objective of antiboycott regulations. Promoting foreign investments or eliminating tariffs are not the core functions of these regulations. Furthermore, encouraging firms to participate in foreign boycotts contradicts the very essence of the antiboycott stance, which is to dissuade compliance with such practices.