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Would that mean border colonies would themselves split away from the Federation, or simply deal with the new Battlefleets needs as they would for example a Ferengi? By acting as a business selling them (insofar as Federation colonies sell things) equipment using the colonies factories?

I think 1) determines the answer to 3). Reasonably what sort of manufacturing could they get done to reliably interfere with the border war? I don't think they'd be able to build anything with any level of reliability; but a trade deal with the other regional powers would be far more likely and...