In an annexed nation resources are produced in either core or non core territories:
* Core territory: Resources are produced with no penalty to production.
* Non core territory: Resources that are created in a non core territory are produced at a 50% penalty to production. The revolt risk in a non core territory further decreases the amount of resources produced by giving an additional penalty to production (around 10%). For example if a Nationalist Chinese core territory produces 1 unit of rare materials per day it will still produce 1 unit of rare materials per day if it is conquered by the Communist Chinese Army. If on the other hand this Nationalist Chinese core territory is conquered by the Japanese Army it will produce around 0.4 rare materials per day since they suffer from both non core and revolt risk penalties to production. Revolt Risk also affect supply throughput, the higher the risk the less supply makes it through that region.