The Direct Trading the other players are speaking about here is actually different, Luke. But it doesn't matter much.
Could you name your country's and corporations' names, so I can have a look?
Did you click "contract full production to [country] and accept", or was it something else?
Hiring only diminishes (if set to 100%), when it lacks workers. And base production falls if hiring falls, or lacks supplies.
You can manage your economy as you well desire, but as a sidenote: it is more profitable for you if you have an open market - buy and sell with the rest of the world.