Why do multinational enterprises set up upstream subsidiaries in overseas markets?

Why do multinational enterprises set up upstream subsidiaries in overseas markets?
This is a Global Strategy essay. It is expected to discuss the difference between upstream subsidiaries and other types of subsidiaries, and highlight the importance of upstream subsidiaries in multinational enterprises’ global value chains.

It should include at least one case discussion. The case discussion should be based on a subsidiary which has been recently (i.e. within ten years) established in a foreign market, and you need to provide information about the establishment year of your chosen subsidiary. The multinational parent of the chosen subsidiary should be from one of the following manufacturing industries: 
• Motor Vehicles, Trailers and Semi-trailers. 
• Computer, Electronic and Optical Products.

An introduction (about 100 words) to an essay should address itself directly to the question or topic that has been asked to discuss, and highlight the importance of this topic in international business field.
The analysis section (about 800 words) of the essay should describe your response to an essay question. You need to cite and discuss a few relevant literatures on your chosen topic in the analysis section. It also needs to include relevant case discussions. 
When you include case discussions, you also need to discuss the following:
• How does the case discussion support your answers?
• What was interesting about the case discussion?
• Does it appear to follow the prediction of relevant literature?
The conclusion (about 100 words) of an essay should summarize the main findings, discuss managerial relevance of this topic, and highlight the main contributions of the essay.
The bibliography (not included in word count) provides full information in Harvard style for all references cited.

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