There are four main disadvantages in developing localization policies. First, understanding local markets takes time, effort, and extensive financial resources. Second, there are disadvantages related to the complexities of having to make changes in work policy and practice to meet local conditions. Third, managing without expatriates involves looser coordination from an HQ perspective and potentially greater problems in communicating with HQ from a subsidiary perspective. Fourth, a major concern of senior HQ managers with respect to localization strategy is the fear of losing intellectual property rights, particularly in the emerging markets where the perception is that everything can be copied. Selmer describes this as an “agency problem” and argues that expatriate presence may help to guard against local managers pursuing their personal self-interest in managing the subsidiary or making decisions which are incongruent with the organization's global strategy