Globalization and international competition

Globalization of an economy has radically altered the nature of competition-both domestic and international. Analysis of the relevance and limitations of the indicators most frequently used in measuring competitiveness shows that the results produced by the traditional measurements do not, by themselves, give a clear idea of whether competitiveness has improved or deteriorated. This paper describes the limitations of the traditional indicators of competitiveness. These are two sorts: first, the results are not time-independent of the economic context in question. Second; they only take into account of the role of international trade. On the basis of these findings, the authors suggest several new lines of investigation and also provide a critical description of several indicators most frequently used in studying competitiveness