They would just do some wizardry to avoid the consequences like making a parent company with two subsidiaries that licensees the IP to the individual operating companies one for the domestic market and one or the undesirables.
A longer term solution would most likely require imposing a scaling import tariff on non-democratic countries in proportion to their level of human rights abuses. This would establish a rule where their ability to acquire democratic foreign currencies redeemable for weapon systems automatically decreases on the margin if they they pursue authoritarian policies, and automatically increases on the margin if they pursue reforms.