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3.0 Discussion
It can be learned from the above analysis that moving production operations to a developing country can bring benefits to a company in social, economic and political aspects. However, the above three aspects will also bring about drawbacks to the company. So for a company, considering how it can avoid these drawbacks in the process of moving production operations to a developing country, the author believes that it can take the following three aspects into consideration. First, it should choose a destination country cautiously, it should choose those countries with stable political conditions, friendly natural and climate environment, relatively complete legal systems, and friendly relations with their own governments. Second, it must understand and abide by the local legal system and the national trade system, and be good at using these systems to safeguard their own interests. Finally, the product production in the region should follow mutual benefit and win-win principles to help the company achieve a sustainable development in the region.
4.0 Conclusion
Moving production operations to developing countries is a choice for many companies, which is understandable, because such choices can indeed bring many benefits to the enterprises, but these companies should not ignore the risks brought accordingly. Choosing a right investment destination and adopting effective laws and trade means, the business philosophy of mutual benefit and win-win results may be an effective means to avoid risks.
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