Question: BM is the world's largest licensor, and, as such, has a drawback in that licensing... forces IBM has to bear the development costs and risks

BM is the world's largest licensor, and, as such, has a drawback in that licensing...
forces IBM has to bear the development costs and risks associated with opening a foreign market.
does not help firms that lack capital to develop operations overseas.
means that the firm can neither franchise nor enter into strategic alliances
cannot be used when a firm possesses some intangible property that might have business applications.
does not give a firm the tight control over strategy that is required for realizing experience curve and location economies.

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