State Regions, as a geographical unit, affect the stats of States, which are political units. These stats range from the State's economy, population to its military.
In addition to political ownership, there are a number of conditions that can apply to a State that affects the local population and economy. First of all, there is something called Incorporation Status, representing a State’s political status within the country that owns it. The different Incorporation States are as follows:
- Incorporated State: A state that is a fully integrated political unit in the country. This state incurs full bureaucracy costs, pays all forms of taxes required by the government, and gets the benefit of all national Institutions.
- Unincorporated State: A state that is owned but only very lightly administered by the country, such as frontier states. Unincorporated states do not incur any bureaucracy costs but only pay certain taxes (such as Consumption Taxes), get no benefits from national Institutions and have reduced Infrastructure.
- Colonial State: A state that is considered to be an overseas colony. Works similarly to an Unincorporated State, but also gets increased immigration at the expense of even lower Infrastructure.
It is possible to Incorporate any Unincorporated/Colonial State as long as you have the Bureaucracy that would be needed to properly administer it, but this can be a rocky process - while the increased costs kick in immediately, the benefits such as taxes, institutions, and so on, are only gradually phased in overtime. The time it takes depends on how easy it is for your country to integrate the local population - it would be a lot more difficult for Britain to incorporate an Indian state than it would be for them to incorporate the Falklands, for example.
Other conditions that can apply to a State include, but are not limited to:
- Capital State: The political capital of a country. All Pops living in the Capital State have increased political power.
- Market Capital: The economic capital of a country. Has increased Infrastructure and Migration Attraction.
- Turmoil: A State that has too many political radicals, as a percentage of the population, will experience Turmoil. A State with Turmoil suffers penalties in the form of increased Tax Waste and reduced Migration Attraction. These penalties can be reduced by investing in the Police institution.