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1. It can give some industrial leverage for governments in exile, especially when playing a minor country
2. It's much more robust compared to adding building slots in states, because there is a hard cap on building slots and a lot of edgecases to handle with dozens and dozens of near-brainmelting conditions just to add factories
It works exactly as the chinese focus tree's offmap factories bonuses
I think this can be prevented by adding building slot in provinces. just like in most major/minor industry national focuses