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Johan

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It's extremely useful for minor nations. I play as Canada. Canada does not have much leadership to spend on technology. So I get my Motorized infantry divisions from the UK, and my Armour divisions from the US. It would take me a long time to research the required techs to get motorized and armour, whereas I can just buy a production license instead. When the war starts, the UK will often give the production license for free, and the same with the US once they enter the war.

Yeah, thats the design and intent of the feature. Its to provide the minors to do what they did historically.