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That's about the short and simple of it.
If I lower the taxes, does that mean they'll stop importing from the outside? I'm just trying to figure in terms of how the taxes plays out with the import and export.
Sorry for the noob questions
It's a bit more complex than that.
and you shouldn't really be worrying about if they're importing or exporting.
You should focus on having a balance of all industry areas making all goods - in the overview tab for production you can see positives and negatives of ore, oil, lumber, furniture-etc etc.
If you want any single industry to be more profitable, then you need more goods what they use being produced, which means making more industrial zones which make what they want. - if you don't specifically care what goods you make, you just want a "big yellow zone" or multiple medium yellow zones, or specialise all one type of ore/oil/farm/wood, etc. and let them businesses sort it out.
- but it works like this.
travel distance (more lowers their profit)
work effectiveness (higher raises it.- educate workers for that.)
rent factories pay (higher lowers their profit)
This means a factory which sends to a train cargo yard right next door to export to, and picks up from a lumber yard next door, earns more money than an oil factory which has to import off the map via road and has to export off the map.
- hope this helps = P
Also profit is after their running cost.
If they make 100 coins from selling a chair.
and it cost them 50 coins to buy the wood.
They made 50 profit.
If I tax them 50%. I take 25 coins. They made 25 profit. - profit is the excess after production is done and finished.
We have other terms for totals, and running costs, etc.
but for tax purposes you only look at "Profit."
https://www.youtube.com/watch?v=mF7Ir0Qn0K8