Final answer:
An import tariff directly raises the prices of foreign goods by imposing a tax on them, while a quota restricts the quantity of certain goods that can be imported, potentially raising prices if demand exceeds the quota limit. The other options are not as directly related to price increases of foreign goods.
Option 'e' is the correct.
Step-by-step explanation:
The question posed asks which factor raises the price of foreign goods. Among the given options, import tariff directly impacts the price of foreign goods by adding an additional cost to them. An import tariff is a tax imposed by a country on goods and services imported from other countries.
This makes foreign goods more expensive relative to domestic goods, theoretically protecting domestic industries from overseas competition.
A quota, which is another option listed, also restricts the amount of a certain good that can be imported, thus possibly increasing the price if the import limit is binding and lower than the market demand. The other options, an embargo, exchange controls, and the World Trade Organization (WTO), do not directly raise the price of foreign goods in a straightforward manner like a tariff or quota.
Trade restrictions including tariffs and quotas are forms of protectionism and serve to protect domestic industries by effectively raising prices of imported goods, causing domestic consumers to pay more while domestic producers may benefit from reduced competition.