Final answer:
A decrease in business taxes tends to increase business profits by reducing expenses. The broader impact on the economy, such as job numbers, can be influenced by many factors including international trade.
Step-by-step explanation:
A decrease in business taxes will tend to increase business profits. Taxes are an expense to a business, and when those expenses are reduced, the company retains more of its earnings, leading to higher profits. Competition can impact profits if other firms offer better or cheaper products, but this is a separate issue from the effects of tax reductions on business profits. It is important to note that while reduced taxes can increase profitability, they do not guarantee business success if there are other overriding factors, such as strong competition.
In a broader economic context, international trade can affect job numbers. While it may lead to job losses in less competitive industries, it can also create jobs in sectors where a country has a comparative advantage. The net effect of international trade on jobs can vary depending on a multitude of factors, including the skill level of the workforce, the mobility between industries, and the adaptability of the economy.