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How is it calculated? For example, Romania, Finland, Canada are based on which level tree?

Thanks

Their controllers. Just like if Germany wanted to they could have given modern weapons to the Romanian army. But choose not to because they didn't have enough.

So in the game if players were smart and wanted to keep minors as garrisons they would shut off reinforcements and use the minor's PP and manpower to make MORE garrison type of units. Low tech divisions.