What is a first-tier subsidiary?

In international business, a subsidiary refers to a corporate enterprise of the host country established around the world with all or part of its shares invested by the parent company. The subsidiary is legally independent from the parent company and has an independent and complete company management organization system, so it has greater independence and certain flexibility in operation. At the same time, the business activities of subsidiaries should also be indirectly controlled by the parent company and should be subject to the needs of the overall strategy and interests of the parent company.