That's possible and I do that rather often. It's an exploit though and some players look down on it.Even though barracks building possibilities should be determined by government types, maybe it is not adjusted dynamically. Perhaps you can:
Build Type-IV, build regional barracks up to MIC level 5 -> get a lot of foreign units.
THEN
Destroy Type-IV, build pacification, build Type-I, build factional barracks up to MIC level 5 -> get a lot of factional units.
Thus getting the best of two worlds.
Swêboz guide for EB 1.2
Tips and Tricks for New Players
from Hannibal Khan the Great, Brennus, Tellos Athenaios, and Winsington III.
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