Involves a business actually setting up facilities in the chosen foreign market and operating from there. Having such a base and a location allows it to be better known. This may enable a business to take advantage of cheaper labour and government incentives. The business is also likely to benefit from lower transport costs, no import / exchange control barriers and greater revenues, as there is no third party involved. It is, however, riskier than the entry strategies listed previously, and requires much greater investment. It is also far more risky if the business lacks experience and expertise in overseas markets.