Final answer:
Larger and cheaper workforces, raw materials, and technology generally lead to lower prices, which is true. However, comparative advantage, which influences international trade, is a broader concept affected by various factors such as education, specialized knowledge, economies of scale, and not solely by natural resources or workforce costs.
Step-by-step explanation:
The statement "Larger and cheaper workforces, raw materials, and technology mean lower prices" is generally true, as these factors can contribute to the reduction of production costs, which in turn can lead to lower prices for consumers. However, these are not the only elements that determine comparative advantage.
Comparative advantage refers to the ability of a party to produce a particular good or service at a lower opportunity cost than another, and it is influenced by a number of factors beyond just labor and material costs.
As noted in the provided reference material, comparative advantage can stem from a variety of sources, not just natural resources like climate and mineral deposits, but also from the education of workers, the knowledge base of engineers and scientists, specialized learning within parts of a value chain, and economies of scale.
For example, if one country has a highly educated workforce capable of producing high-tech goods efficiently, it may have a comparative advantage in that industry even if another country has lower labor costs.
Therefore, while larger and cheaper workforces, raw materials, and technology are important, they are not the sole determinants of economic success or the pricing of goods. Factors like education, specialization, and productivity also play a critical role in establishing a country's competitiveness in the global market.