Cost competitiveness compares evolutions in wage costs in France (changes in labour costs corrected for changes in productivity) to those of the country's trading partners. The weight allocated to each of those partners measures the extent to which that partner competes on each of France's export markets. It also takes account of the importance of each market to France (measured by the weight it represents in its exports) and the share held by the competitor on that market.
Likewise, export price competitiveness compares evolutions in our export prices with those of our partners. The exchange rate can have a major impact on price competitiveness: depreciation of the national currency will result in an improvement in price competitiveness.