Yep. As Akroma says they both disband. Just as with anything else in this game, two equal forces bounce. And if they can't follow their retreat order then they disband.

This can be especially useful if the front is near your home center but not your enemy because you get to rebuild near the front while their unit ends up in the rear. Assuming you get to rebuild at all of course. Or better, your enemy can only retreat to one place so you retreat there too because their home centers are not open so they won't be able to rebuild at all. Lots of benefits that rarely come up, but when they do, make sure to capitalize on them.

Great, that's killing me...
However, what if I finalize but he doesn't? Same thing happens? (The system sets the retreat for us)

Yes, the same thing happens. The finalize thing has nothing to do with the rules of the game. It simply allows players to have a turn processed before the deadline if they have all finalized.

you mean if he doesnt enter retreat orders at all.
then i suppose his unit just gets disbanded

Hellalt is right there.

The thing is, the new system helps him to choose retreating to that place, he doesn't even have to get online to bounce my unit there and disband together with me...

That's not true. If he never logs on, then he will have an incomplete order and his unit will disband. If he logs on long enough to enter the territory to retreat to, but doesn't finalize, then yes, he will bounce you there.

For my case, when I just logged in, the order there is already saying that my unit will retreat to Ukraine. The destination is fixed as there's no other choice, the only option there is for retreating or disbanding. Therefore, even if he doesn't log in, the system already helped him make the decision of retreating to Ukraine. In fact, I didn't need to log in to set that move either.

How the heck can you have all these points and have played all these games and not know this? You must be good if you've never had to retreat before. :-)

I used to play a lot here but then I got too busy and stopped for more than a year. I just returned to diplomacy a few days ago and the system is now new. I played at the time when there was still the convoy problem...

I think if you have only one choice to retreat to, the system enters it automatically.

If you have more than one, then you won't retreat.

What was the problem with convoys?

You had to specify the route of the convoy, and couldn't support them if irc

Exactly.

TGM, that's correct, you couldn't support convoys, which really, really hindered anyone trying to play as England in the 'old days'!

YES Captain. We had to secure the entire region just for one convoy!~...

Look at this as another opportunity to assert your diplomacy skills and convince the other player to disband and retreat. If they are your ally, make it clear why it is more important for you to hold that territory thn for them.

grrrrr "convince the other player to disband and YOU retreat."

But the problem is that is a new player who doesn't even look at messages...

Then they should be easy to beat

I think that if there is just one place to retreat, the system will pass this order automatically even if the guy does not log on.
Could someone confirm that?
Is it the same with a country in CD if its unit gets dislodged?

In the end I got in... He didn't finalize at all and his unit probably disbanded.
figlesquidge, well he should have been defeated long ago, just that the way he plays is a bit silly but unexpected, and countries around are just too busy to bother... that allowed him to survive till today... but he's dying in 2 rounds.

@yeunghauyip - Your win/draw/survive/loss ration is freaking awesome!