Re: when to fire back
One thing I find which works is to have some scout units in my force. They can move closer without taking fire and bring the enemy under fire to suppress. In addition they can sometimes spot other enemy elements. I find that where there is one squad there are usually several others as well as possible heavy weapons further back. Like Claus said when you come under fire try to suppress the firing unit. Another trick is to switch off fire from unit to unit when you shoot so they do not get any bonus for firing consecutive shots at your unit.
The game now forces you to use good combined arms tactics if you want to succeed. Send in scouts to find them use Arty and Heavy Weapons/Assault guns to suppress them and then move in close to mop up with your infantry. I am finding that a good unit choice is motorcycles or cavalry. If you hold them back until the enemy is suppressed then you can rush in and finish really hit them hard.
Tom
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