To learn about the local market and supply sources you need to be there; study local cost structures and customer price points Don’t be discouraged by lack of sophisticated infrastructure in developing countries; you can still find “Diamonds in the Rough” Inspect what you Expect; don’t do business directly with a factory solely by email For critical components specify production process, materials and measurement methods, along with clean engineering specs; will require time of engineers/managers Expect to make down-payments in pre-production stage, for tooling, materials; use letters-of-credits to protect your investment Take care to protect your intellectual property; deal with trusted parties or use intermediaries with enforceable contracts Control supply chain bottlenecks, plan for longer lead times add more inventory It is better to be "always first" than "always right"; what you don't know, you can learn from others. ------------------------------------------------------------------------------------------------------------------------------------------------- "Its a very easy to get into China but we find it difficult to stay there and it is very difficult to get into India but very easy to stay there" - a Japanese Executive -------------------------------------------------------------------------------------------------------------------------------------------------   ------------------------------------------------------------------------------------------------------------------------------------------------- "Productivity of Indian suppliers is likely to improve at much faster pace than that of their counterparts in Eastern Europe or China" - McKinsey Quarterly Nov, 2004 -------------------------------------------------------------------------------------------------------------------------------------------------