Your political reputation affects how likely allies are to trust you and what kind of deals they'll offer at the negotiating table. There's also some emotional response in there so factions do bear grudges. Just like the real thing.
I'm not going to be in a relationship that I don't fully trust.
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Because Microsoft seems to sometimes not trust customer choice they salt XP with all these little gizmos and trap doors to get people to try Microsoft stuff. But the reality is that we're downloading more players than we ever have on a worldwide basis.