First, you can of course do "bad discrimination" when it comes to favouring your family and friends. That's for example the case with nepotism.

But, I don't know about you, but when I do something nice for my family or my friends, I don't have them compete with non-family or non-friend in my head. I'm never in a situation where I think "oh, X will get this, but I prefer to have my friend having this". This is a horrible situation: friendship is not a zero-sum competition where you reward your friends and punish your non-friends.

If I have the choice of giving a job to my friend or to a foreigner, I will give the job to the most qualified.

And, yes, I can "favour" my country: for example, I may support a national sport team. No discrimination there. But if I have to make a choice between two countries that deserve it equally and that this decision has bad consequence for one country, I will certainly not pick the country I like the most just because I like it the most.

So, again: there are "ok discrimination" and "bad discrimination", both can be about country/family/...