Competitive Performance

Competitive Performance and International Trade Economy

In relation to international trade economy, Christopher Mark (1993) provided the following definition of Competitive Performance: The measurable results of competitiveness –i.e., the outcome of a country's or a firm's efforts in selling competitive goods or services in international trade. Frequently-used measures of competitive performance are market share (share of total sales from all sources in a given country, or of total world exports of a particular product); trade balances (or export-import ratios, which permit comparisons among industries of different sizes); and revealed comparative advantage. Most measures of competitive performance are flawed for purposes of policy analysis if used in isolation (see more information in the entry about terms of trade). Some writers use the terms competitiveness and competitive performance interchangeably, thereby confusing the cause with the effect.