Communicative competence refers to an individual's ability to communicate effectively and appropriately based on the social context. It involves four elements: grammatical competence, sociolinguistic competence, discourse competence, and strategic competence. Grammatical competence is knowledge of grammar rules, sociolinguistic competence is understanding appropriate language use based on social context, discourse competence is coherent language use across sentences, and strategic competence is adapting language when needed due to communication issues.