Resource Based View (RBV): Advantages and Disadvantages

Re initiation found emplacement (RBV) Advantages and DisvantagesThis report reviews the empiric studies of the imagingfulness based view (RBV) and examines the benefits and limitations of RBV as the vanquish scheme highroad in the developing a rigids strategy. By having a clear and focus strategic intention, it mobilises an geological formation towards achieving the desire position. Firm would be equal to(p) to win sustainable competitive advantage (SCA) by analysing its native and immaterial purlieu victimization the RBV and ushers industry analysis (IA) respectively,The significant of RBV is by means of an understanding of the human relationships in the midst of resources, capabilities, competitive advantage, and economic rent. The RBV identified characteristics of advantage-creating resources such(prenominal) as respect, rarity, imitability and Organisation (Clu secondary et al, 2007 Barney, 1991). In contrast, Porters IA focuses on lower woo and intersectio n point distinction in achieving sustainable competitive advantage.Despite the conflicting issues, the RBV has examined issues and new directions that will help to light up the value and boundaries by desegregation with Porters industry analysis. Porters fabric and the RBV of the stiff essenti anyy perceived the primary role of strategy in attaining a SCA (Hax A. C. and Wilde II D. L., 2003). Thus, both frameworks be complementary as they emphasised in different dimensions of strategy (Hax A. C. and Wilde II D. L., 2003).(183 Words)IntroductionThe RBV is champion of the modern strategic worry concepts to develop a firms strategy. The objective of this report is to accept or close out the contention that RBV analysis has a strong relationship with firms perfor realityce in attaining a SCA.This report reviews the books on competitive advantage and firm performance. It is divided into five main comp angiotensin-converting enzyments. The send-off parting summarizes the l iterature on competitive advantage from cardinal viewpoints, the RBV and Porters IA. The second section discusses on the strengths of the RBV in reviews with the literature on strategic intent, threshold resources, capabilities, competitive advantage, substance contendncies, SCA and VRIO. The trinity section illustrates Porters IA in reviews with speak to, differentiation, and commercialize focus. The fourth section deliberates the criticisms of the RBV. The fifth section illustrates how researchers generate overcome some of these boundaries. It reviews an integration of the RBV and Porters IA in the proposed model of core competencies, competitive advantage and firm performance (Chabert J. M., 1998)(165 Words)The Resource Based View of the FirmThompson et Al (2010) point out that RBV1uses a companys VRIO2strengths and competitive capabilities to introduce value to clients in an approach that rivals find it difficult to ensue. The RBV emphasises on the internal capabilitie s of an scheme in formulating strategy to achieve SCA3in its markets and industries (Henry, 2008). It holds that firms can clear up sustainable abnormal returns if and only they have brilliant resources and its protected by an isolating mechanism preventing their diffusion throughout the industry (Value Based Management.net, 2011).The Resourced Based View AssumptionsThe RBV assumed that resources be diversity and stoicism (Barney, 1991 Mata et al, 1995). According to Mata et al. (1995), resource diversity concerns whether different firms possess rafts of different resources and capabilities while resource immobility refers to a resource is difficult to obtain by competitors because the supply is springless or bely. These two assumptions can be used to pay back whether an governing body is able to create a SCA by providing a framework to determine whether a process or technology provides a real advantage over the mart (Brown, 2007). Thus, the RBV tends to focus on the types of resources and the characteristics of these resources that pass on them strategically important.The RBV as the best strategy route in developing a firms strategyToday managers argon moving manufacturing offshore to lower costs of labour, streamlining point of intersection lines to capture global scale economies, instituting quality circles and JIT4, and adopting Japanese humans resource practices (Hamel and Prahalad 1989). It was believed that the application of concepts resembling strategic fit (between resources and opportunities), generic strategies (low cost, differentiation and market focus) and the strategy hierarchy (goals, strategies, and tactics) have often aided the process of CA5(Hamel and Prahalad 1989 Andrews, 1971). Most companies have approached competitor analysis that concentrates on the existing resources like human, skilful and financial of current competitors. Whereas, companies be only aw are to the resources that able to increase the future margins an d market deal out as their primary threat. in that location are few Japanese companies possessed RBV, manufacturing volume or technical competence of U.S. and European leaders. For instance, Canons first halting steps in reprographics melodic phrase looked very small compared with the $4 billion Xerox powerhouse (Hamel and Prahalad 1989). strategical IntentIn addition, strategic intent envisions a craved lead position and establishes the criterion of adding value to the RBV of the organisation, for instance, Komatsu set out to encircle bozo (Hamel and Prahalad, 1989). The concept emphasises on an active management process that involved centre the organisations attention on the principle of winning. For example, the Apollo program where landing a man on the moon ahead of the Soviets was as competitively focused as Komatsus drive against Caterpillar. It also motivates people through shared value, enabled person and aggroup opinions, sustaining enthusiasms as environments chan ge and victimisation intent consistently to guide allotment of resources (Hamel and Prahalad, 1989).Barney (1991) and Peteraf (1993) point out that a firm is verbalise to enjoy superior performance comparative than its competitor when the firm can produce economically and higher customer satisfaction, thus empowered them to attain CA. Whereas, Porter (1985) specify CA as the ability to earn returns on investment consistently above the average for the industry by focusing on the companys external competitive environment and how they position themselves against that structure (Halawi L. A., Aronson J. E, and McCarthy R. V., 2005). In contrast, the RBV of strategy points non to industry structure but to the unique cluster of RC6that each organisation possesses (Henry, 2008 Collis and Montgomery 1995 Stalk et al, 1992).Firms Outperform and Maintain rivalrous AdvantageThe Benefits of RBVRBV is best applied for the assessment of a firms existing resource portfolio or when exploiting the firms resources to fly the coop into new product markets (Sheehan and Foss, 2007 Barney 2001 Penrose 1959). There are two essential reasons for using the RC as a substance to its strategy. It provides a direction for firms strategy and they are the primary source of return for the firm. The RBV perceives the value derived from management skills, information capabilities, and administrative processes as scarce factors that able to generate economic rents (Sheehan and Foss, 2007).Firms as bundle of ResourcesThreshold resources are defined as the unique combination of assets and capabilities deep pour down a firm that enable firms to develop and implement strategies to cooperate customers nominal requirements and to improve its overall performance (Scholes J. G., and Whittington, R., 2008). It can be classified as either tangible or intangible resources. Tangible resources refer to the personal assets that a firm possesses. In order to add value, these physical resources m oldiness be capable to respond to marketplace changes. Intangible resources comprise of human and organisational gravids. It may be embedded in cultures and practices that have developed over time within the organisation (Henry, 2008).It involves friendship based economy, the silent knowledge and specialist skills of many employees which are difficult for competitors to imitate (Henry, 2008). Nonaka and Takeuchi (1995) classified knowledge as explicit and tacit. A communication that can be pronto transferred is known as an explicit knowledge hence, it requires protection like copyright. While, tacit knowledge is discovered through its application and acquired through practices such as beliefs and perspectives and cannot be codified (Henry, 2008).RBV and Organisational learnThe RBV stresses the significance of developing and enhancing those resources that are typical as distinctive capabilities (Olavarrieta and Ellinger, 1997). Ten3 Business e-Coach (2001) defined capabilities as the capacity for a set of resources to interactively perform a business process. Capability is a source to SCA as it is based on organisational routines and processes that are socially complex, knowledge-based and difficult to imitate.A firm is able to possess dynamic and operational capabilities, where dynamic capabilities are defined as those processes that allowed the firm to change its resources based on techniques to meet the differences in strategic and competitive challenges (Zubac et al, 2010 Helfat et al, 2007). The perception of a dynamic faculty was developed to expound why some firms have been able to vanquish their competitors over long periods of time and despite significant changes in the marketplace (Teece et al, 1997). It is specific and identifiable processes involved conceptualisation, product development and strategic decisiveness making (Eisenhardt and Martin, 2000, p. 1105).Conversely, an operational ability is the firms capacity to combine, assemble and deploy the firms assets using pre-determined activities, routines, processes and the skills of its employees to make goods and services that are a source of potential earnings to the firm available to its customers (Spanos and Lioukas, 2001). However when a firm is adopting a differentiation strategy, they would focus on new product development, whereas a firm which implementing low cost strategy would focus on improving manufacturing process faculty (Henry, 2008). Capabilities are not built in short period they are dependent on employees, knowledge based, understanding of the marketplace and customers requirements and operations (Olavarrieta and Ellinger, 1997).The Competitive Advantage of RBVCompetitive advantages and disadvantages in resources are equivalent to strengths and weaknesses respectively, which stimulate cost and differentiation advantages or disadvantages in competitive product markets (Valentin K. E., 2001). When an organisation implements a value creating strategy where it is not implement by the rivals then it is said to have CA (Halawi L. A., Aronson J. E, and McCarthy R. V., 2005 Barney, 1991). CA can be created in variant methods through size, location and accessibility to resources (Halawi L. A., Aronson J. E, and McCarthy R. V., 2005 Ghemawat, 1986). The CA gained by these RC is then reflected in superior performance of the firm in financial scathe such as higher profits, increased sales or market share (Clulow et al, 2007 Hunt and Morgan, 1995 Collis and Montgomery, 1995 Fahy, 2002 Wilcox-King and Zeithaml, 2001).The Competencies of an OrganisationsHenry (2008) evaluated competency as the internal capabilities that firms require in order to be able to compete in the marketplace. In addition, Zubac et al (2010) defined CC7as the collective learning of individual members within the firm and their ability to work across organisational frontiers. Prahalad and Hamel (1990, p. 82) stated thatThe skills that together occasion core compete nce must coalesce around individuals whose efforts are not so narrowly focused that they cannot recognise the opportunities for blending their functional expertness with those of others in new and interesting ways.Thus, a CC or strategic capability can be thought as a line of battle of features that a firm possesses which enables them to achieve CA. Honda and BMW are examples of the organisations that have achieved CC in a way they set up their value cosmic string respectively (Henry, 2008).RBV and Sources of sustainable Competitive Advantage (SCA)Barney (1991) suggested that there can be heterogeneity or firm-level differences among firms that enabled them to attain SCA. Ten3 Business e-Coach (2001) describes SCA as the continued benefit when an organisation is implementing a value-creating strategy that is not being implemented by potential competitors and incapable to imitate the benefits of this strategy. Therefore, the RBV emphasises on strategic choice, structuring the man agement of the firm with the important assign of identifying, developing and deploying RC to maximise returns (Value Based Management.net, 2011).Bharadwaj et al (1993) propose a framework of SCA for a firm is derived from the RC of the firm. The extent of the service firms SCA is essentially determined by the degree of imitability inherent in the firms resources. Kerin et al (1992) presented an integrative framework of the literature on first mover advantage, suggesting that the realisation of SCA, through market pioneering, is contingent on the resources that a firm possesses (Olavarrieta and Ellinger, 1997).Strategic resources and Superior performancesAs a source of CA, RC must have four attributes which is VRIO in order to outperform others. A resource must be valuable as it empowers the firm to perceive or implement strategies that enhance its efficiency and effectiveness through lower costs and incline of revenue (Ecofine, 2010). Substitutability states that there must be no strategically equivalent valuable resources that can be exploited to implement the same strategies (12manage, 2008). For instance, Wal-Mart sells most of the same merchandise as its major competitors, but the effectiveness and innovation of its logistics system ensures that it is the market leader in the industry. Wal-Marts valuable and imitability point-of-purchase inventory control systems and cross-docking distribution plants have resulted in competitive advantage relative to its major competitors (Olavarrieta and Ellinger, 1997 Barney, 1995).Porters FrameworkPorters Industry psychoanalysisPorter (2008) illustrates CA as an understanding of industry structure that guides managers toward fertile possibilities for strategic action that includes positioning the company to be better struggle with the current competitive forces, anticipating and exploiting shifts in the forces, and shaping the balance of forces to create a new industry structure that is more favourable to the comp any. There are three sources that is irreproducible, for instance, market structure that limits entry, a companys history which by comment will require time to imitate and tacitness in relationships refers to the routines and behaviours which cannot be imitate since the organisations themselves are unsure how they work (Henry, A., 2008). Porters mentioned that there are only two generic studies to compete either through low cost or product differentiation that lead to superior performance (Hax A. C. and Wilde II D. L., 2003). To advert managers in understanding, improving, and implementing a low cost or differentiation strategy, Porter (1985) developed the value chain framework it is a generic application that is used to decompose the firm into the individual activities it undertakes to create value for the customer (Sheehan and Foss, 2007).Economies of ScaleCost leadership is achieved through the aggressive pursuit of economies of scale, product and process simplification, and s ignificant market share that empower companies to exploit begin and learning effects (Hax A. C. and Wilde II D. L., 2003). Dell being one of the organisation are protected by scale economies in their direct-sales method, efficient lean-manufacturing approach, expertness in logistics and supply-chain management. Hence, these capabilities provide it with CA and which its competitive incapable to imitate (Henry, 2008). specialty and Core CompetenciesIt requires firm to differentiate for creating a product that customer perceives as highly valuable and distinctive (Hax A. C. and Wilde II D. L., 2003). The first-mover advantage refers to firms which benefit from the learning and experience they acquire as a result of being first in the marketplace like Toyota has achieved CC in the production of petrol-and-electric hybrid cars (Henry, 2008). Hence, a CC should provide access to a diversity markets, make significant contribution to perceived customer benefits of the end products and dif ficult to imitate. Honda is one of the organisations that focuses on the technical excellence of 4-cycle engines, have facilitated it to leverage its CC to compete in markets from motorcycles to automobiles to a broad range of gasoline-engine products (Grant, M. R., 2001).Market focus system can be viewed as building defences against the competitive forces or discovering the weakest forces in the industry. For instance, Paccar, a firm with heavy-truck market, has chosen to focus on owner-operators group of customers. They have customised the value chain to work immensely with the forces in the segments. Thus, Paccar has earned a long-run return on equity (Porter, 2008).CriticismsRBV ImplicationsThe RBV of the firm is a contemporary system that provides insights on both strategic and organizational issues. An often-recurring critique on the RBV is that its core logic contains circular reasoning in the specification of the relationship between rents and resources (Truijens, 2003). It resulted based on the assumptions of firm heterogeneity and economists preference (Truijens, 2003). Rents are frequently used as firms critical resources which acknowledged by comparing successful firms with unsuccessful firms (Truijens, 2003 Mosakowski et al., 1997, p.2).The RBV also emphasises on the role of human capital in the creation of CA, which at the same time caused issues for accountants in terms of total business and intangible asset valuation (Toms, 2010). Accountants equally are concerned with controls which prevent misappropriation of resources that ultimately are shareholders property. Thus, a theory of value also needs to be accountability (Toms, 2010).ConclusionPorterian thoughts on value chain activity actually ways in which to configure and coordinate internal RC in various ways to achieve value at every stage until it results in SCA, and ultimately, achieving strategic intent, i.e. a desired leadership position. Porters value chain model was a contribution tha t helps complement his views on strategic positioning and CA. His views on analysing the industry five forces and selecting one of the generic strategies ultimately require the firm to look into its value chain activities. If, for example, the goal is to achieve cost leadership, then every activity, resource and capability in the value chain will be configured, coordinated, combined and utilise in such a way as to bring down costs and achieve greater productivity and higher profit. The strategic intent may be to attain no. 1 position. But cost leadership as a generic choice becomes the driver that guides all RC decisions and activities in the value chain.Activity-based drivers and RBV has many similarities, both influence a firms cost and differentiation position, and both need managerial involvement in a way that drivers must be made controllable, while resources must be organised (Sheehan and Foss, 2007). Although these frameworks have often been presented as conflicting views th ey can consecrate greatly to the development of a strong business strategy.By integrating these frameworks, it enables activity-based view solves implementation issues that are unresolved when using the RBV (Sheehan and Foss, 2007 Barney and Arikan, 2001). It enhances many of the individual weaknesses of the two views. The activity-based view is weak in its assumptions about factor markets, which would be addressed by the RBV (Sheehan and Foss, 2007 Teng and Cummings, 2002). Thus, Porters IA8remains crucial and the choice should not be seen as one of either but rather one of complementarity.

Radio Frequency Identification Rfid Tourism Essay

Radio Frequency realization Rfid touristry EssayChapter 1IntroductionThe 21st century has experienced monumental changes and growth in some(prenominal) fields of the world economy. supranational trade, communication, engineering science, monetary services, manufacturing, and early(a) fields of line c all told for recorded immense growth. To this end, arguing is cutthroat as occupancyes occasion global and multinational conglomerates dictate business trends. In this regard, multinational transport, both human and good, has immensely enlarged. The number of ships, air passage businesss, cross-border railways, international highways, and other forms of transport atomic number 18 recording immense volumes of transportation. Such colossal volumes create identification and bring in headaches for businesses as they strive to meet the of necessity of the customers. Commodities in transit tend to get lost in Brobdingnagian piles of baggage, creating a nightm ar for both t he client and the business.In the past, several(prenominal) technologies have been mathematical functiond to find and track baggage. ane such applied science has been the utilise of a bar code system of rules, a collection of queer numbers that identifies the specific baggage. While this applied science whitethorn be potent in identifying items, it was found wanting when it comes to tracking.To solve this, Radio Frequency Identification (RFID) has been introduced as a means of solving both the identification and tracking requirements. The RFID system is composed of two basic building blocks, the just the ticket and the receiver social unit. The tag is a widget that contains a small, inexpensive, programmable memory chip and a transponder unit that is attached to the commodity to be transported. The chip is a memory unit that contains unique information regarding the baggage, and the transponder transmits that information to a receiver. Hence, when the baggage or commodi ty passes through a magnetic sound outer, the information regarding the baggage is captured and retrieved via the transponder. This information non only identifies what the baggage is and who the owner is, but it also provides information regarding where the baggage has originated (Garfinkel, Juels, Pappu, 2005).The receiver unit is composed of an interrogator which emits a signal that activates the transponder. erst the transponder has forwarded data to the interrogator, the receiver unit has an inbuilt decoder that translates the data and relays it in a manner that can be understood.The RFID concept has since become the favored tracking engine room for close to shipments. However, the technology has non been implemented in consumer goods found in stores. This is because tags are still comparably expensive when it comes to consumer goods. immense shipments such as shipping containers have busy RFID technology as international sea ports have increased their annual baggage capacities. In the airmanship industry, much contr all oversy surrounds the use of RFID technology. Some air ducts are conclusion it expensive to introduce, while lead story airways are introducing RFID with a competitive border in mind. There are also social issues that surround the instruction execution of RFID. These social issues range from human tracking to tracking baggage fox up after it has left the airdrome. Opponents of RFID technology argue that such tracking infringes on privacy and should therefore not be utilize in any(prenominal) of its forms. While the above argument may be true, RFID provides unrivalled ability in manipulation goods in transit.HistoryRoberti (2011) explains that RFID technology has been in use for quite a few years now. It is noted that RFID technology was employed in the Second World War in order to identify enemy gunships and fighter planes. In 1980, RFID tags were used to identify military equipment. Garfinkel et al. (2005) trust t hat recent growth can be attributed to the fountain of invasive commerce. In this way, businesses make use of RFID technology to track movement of commodities and by prolongation understand consumer behavior. These businesses are able to do this by embedding smart readers and transmitters onto commodities in order to track them over a wider distance using a networked system to gather data from contrastive locations. This information provides businesses with a clearer draw of which consumers prefer what commodity. This allows businesses to align their production with consumer preference.Uses of RFIDAs previously mentioned, RFID was first used in warfare to discern friend from enemy. Similarly, the military used the RFID system during the cold war era to identify, sleep together, and track nuclear weapons. Today, there are several applications of RFID, which may imply Supermarkets and retail stores use RFID to manage inventory, equipment, and staff. Airports and airlines use RF ID to manage staff, passengers, and baggage. Hospitals have used the technology to manage key equipment, inventory, and staff. Manufacturing businesses have used RFID to manage inventory and employees. The military uses the technology to track and reminder psychenel and weighty material such as nuclear weapons.Advantages of RFIDOne of the greatest advantages of RFID tags is the ability to track consumer goods right from the manufacturer to the point of sale. In general, most goods are produced in foreign nations and shipped to destination countries. However, due to a lack of tracking systems, some goods are lost during transportation, and this is a large loss for businesses. RFID impart give such businesses the opportunity to track shipments. other advantage of RFID is the ability to decode past information regarding where a person or goods have been. Such historical information is of the essence(predicate) in providing crucial information regarding past occurrences.The third advantage is that RFID is automated technology that does not require a human being to actively read it, as the bar code system does. Therefore, it eliminates the human error constituent in tracking and managing movement of goods.Disadvantages of RFIDIn general, RFID can be dangerous technology if not properly managed. For instance, if RFID is embedded in shoes or clothing, such pieces of clothing can be used to track the movements of an person around the world. Such tracking highly invades the privacy of an individual without that individuals cognition or consent. Such tracking may also be a dangerous security risk for individuals.Emirates AirlinesThe airline industry is one of the most apace growing industries in the world. As international commerce has rapidly increased, so has the airline industry. Asia, in particular China, India, South Korea, Singapore, the Arabian Gulf, and Malaysia, has spurred growth. The coupled Arab Emirates has also experienced immense growth, and Emi rate Airlines is right in the middle of this growth.Emirates Airlines is the biggest airline in the Middle East with more than two thousand flights per week. The airline prides itself on a 50,000 staff base and long-range flights (emirates.com, 2008).The airline started take out as a business of necessity. The company website explains that in the mid-1980s, the top airline at the time, Gulf Air, reduced flight services into Dubai. Thus, the royal family in Dubai decided to invest in a new airline, and in manifest 1985, emirates airlines started operating (emirates.com, 2008).The airline has since registered rapid growth, becoming one of the biggest purchasers of aircrafts. It prides itself on a long-range fleet of both Boeing and Airbus aircrafts. In its hangers are the dream liners Boeing 777 and the regal Airbus A380. Such immense growth and investment has led the airline to be a major player in the airline industry. emirates.com (2008) confirms this by insist that in 2011, th e airline was the fourth largest airline in the world. This success has been attributed to faithfulness in in-flight service and consistent profits. The company expects to receive an order of 90 Airbus A380 aircraft by 2017. This is the single largest purchase of passenger aircrafts in aviation news report securing, its future in the aviation industry.Dubai International Airport DXBDubai is one of the 7 emirates making up the United Arab Emirates and one of the fastest developing locations in the globe. At the center of this development is the Dubai International Airport, referred to as DXB in the aviation world. The aerodrome is the biggest aviation hub in the Middle East, discussion 65% of all passengers travelling through the Middle East. The airdrome handles over 130 airlines that make about six thousand flights per week (emirates.com, 2008). Home to emirate airlines, DXB has committed an faultless terminal to the airline.Dubai International Airport sits about 4km north of central Dubai and handles over 50 one thousand thousand passengers annually. Similarly, it is also the sixth busiest airport in impairment of cargo, handling slightly over 2.2 million tons annually.The airport is an important economic establishment in the UAE. The airport provides over 58,000 jobs with hundreds of thousands of indirect profession opportunities. With rapid growth in international tourists visiting Dubai, the airport forecasts that by 2017, it will handle three times the number of passengers visiting today. Similarly, as China and the rest of Asia lead the world in economic growth, Dubai is seek a more central role as the linkage in the midst of the Far East and the rest of the world. Cargo haulage is set to increase at incredible rates. Dubai international airport is constantly looking to diffuse in order to meet its future needs. A second airport that seeks to complement DXB is Al Maktoum International Airport.Problem StatementWith the recent rise in terrorism , drug smuggling, and huge numbers of passengers and cargo, Dubai International Airport and Emirates Airlines are looking to turn to RFID technology. While the concept of RFID may be both timely and necessary, several pertinent issues impact the implementation of RFID at both DXB and Emirates airlines. This research reviews the controversial issues surrounding RFID implementation. The result of this research is to establish whether implementing RFID will be beneficial to DXB and Emirates Airlines.The reason RFID is the preferred technology for the airline and the airport is the ease with which the technology improves counseling and efficiency. The technology could be used to manage both cargo and passengers. With increasing volumes of baggage, the cost of monitoring such luggage has kept increasing as well. This cost is draining company resources and leading to continually diminishing efficiency. A shift to RFID would help the airline and DXB to become the leading airline and loca tion, respectively, in terms of efficiency in handling both passengers and luggage.Benefits of RFID to Emirates AirlinesEmirates airlines has been experiencing an increasing number of passengers and by extension baggage. In addition, with the door of Boeing Dreamliners and Airbus A380, airlines have to find a means of bettering their passenger and baggage handling efficiency. With the introduction of RFID technology, Emirates Airlines will shift its business efficiency to new heights.Furthermore, the airline has been experiencing increasing numbers of barcode misreads, and tracing such lost baggage has been a headache. The airline finds such baggage and, at its own cost, ships the baggage to the customers preferred destination. RFID provides effective tracing mechanisms, and the number of such mistakes will be greatly reduced.Benefits to DXBThere are several advantages that DXB would accrue by implementing RFID technology. Some of the advantages includeSecurity RFID has the advanta ge of tagging both employees and baggage, and the chips contain information about the pass on and the location of the fields. This provides effective security management throughout the entire airport. The tags may also be used as security keys for staff, hence managing the movement of both staff and passengers.Managing Equipment RFID chips could also be used on equipment and other important airport tools. The technology will provide better equipment management for the airport.Situational AnalysisIn February 2008, Emirates Airlines announced its first trials with RFID. The airline was to partner with Londons Heathrow, DXB, and Hong Kong International Airport in testing early uses of RFID technology (emirates.com, 2008).The airline in partnership with DXB and the other airports was going to invest nearly AED 2 million in the technology. The airline was targeting nearly half a million bags over a six-month period. According to Emirates Airlines, RFID not only helps the airline run th e business more effectively, but it also gives customers some peace of mind wise to(p) that their baggage is properly and securely handled.PremiseThis research is based on RFID and the different aspects and the challenges that come with implementing RFID technology both at the Dubai airport and at Emirates Airlines. This paper will explore the different aspects regarding RFID technology, its current applications and the need for the technology at the airport. This paper will delve into the advantages that will accrue upon adopting RFID technology.DefinitionsDecoder- device translating radio waves to data.DXB- Dubai International AirportRFID- Radio Frequency Identification technologyRFID chips- programmable silicon devices that hold subject information.Transponder- transmitter devices that emit radio waves with subject information.DelimitationOne of the main limitations is the lack of resources to perform live tests of the different versions of RFID technology. Thus, for the purpose of results and recommendations, this research will rely on scholarly works and case studies on the same. Another limitation that is likely to hamper the image is the time constraints required to evaluate the entire project. Implementing RFID at an international airport and such a massive airline will have several impacts over a long period of time. This project may not have sufficient time to evaluate the challenges and results of implementing RFID.

FDI Trends in India and China: An Analysis

FDI Trends in India and chinaw be An AnalysisChapter 1 Aim and ObjectivesAll nations need a vision for future which stirs the thoughts and motivates polar segments of society to a colossaler effort and thus inclines them to work toward the public cause that is preservation harvesting of the individual nation. The market place oriented policies unremarkably cast off exclusionary impact which needs to be pr until nowted finished articulate resolution of the insurance policy makers. India is the third-largest scrimping in the world in PPP (purchasing condition parity) terms immaterial straight off set upments (FDI), But chinaware is currently a favourite nation and is more(prenominal) than favored in displumeing FDI over India B all(prenominal)abh (2008). Hence, this dissertation strives to analyse the preceding(a) trend of FDI in India and China, its types, its critical compend with regards to waiter country and investiture firm, classic factors of world wideisation and extraneous(prenominal) look at investings (FDI) st prescribegies to be take, Finally, Its comparison with Chinas FDI and a posteriori evidences would help us cover aim of our thesis which is among India and China, Why is China more successful in attracting FDI than India and is favoured over India? thitherfore this paper has been divided in seven sections. It starts with brief introduction to FDI and its types in section 1. character 2 covers background information and lit termture brush up that gives us a picture of the FDI policies in the past, Its trends and impact on MNCs in context to India and China, FDIs determination on boniface parsimony and MNCs, , Its critical abbreviation establish on Morans model, and at last enthronisation strategies adopted by MNCs where to invest and what to invest. This would give us greater insight into the chosen topic by discussion of dissimilar forms of FDI, its impact on MNCs, on soldiers economy and presenting an strain on discussion. Section trio presents the discussion on methodology to be used for the data collection and analysis. Section four is our data analysis and discussion section that is n eertheless divided into both sections, runner half(prenominal) covers Chinas FDI spread-its Sectoral regional trends, the figures from the data sorted to analyse the offshoot in FDI over socio- economic classs and in different sectors, FDI distri thations and opportunity sector that is playing increasingly important parting by embracing FDI growth. The some opposite half covers Indias FDI Spread-Sectoral and Country wise distribution. Again we use graphs and charts to analyse the trend.Comparative analysis of China with India would act as an indispensable quantity in structuring a consensus on a broad content training strategy to attract orthogonal investors that encompasses the roles and responsibilities of different agents in the economy, like Central, the private corpora te sector, democracy and topical anaesthetic disposal. on that pointfore finally presenting a logical explanation why China is a favourable nation over India and is risquely successful in attracting FDI, hence the like is to be discussed in section cinque. Section Six is astir(predicate) build a feasible policy fabric toward attracting FDI for the arouse of the MNCs and host economy with reference to Chinas successful strategy in attracting FDI and summary of the publications followed by the concluding remarks are presented in the finishing section.The Concept of FDI is now an integral part of every nations economic lookout but the term remains vague to many, despite the thoughtful cause on the host economy and MNCs, despite the extensive studies on FDI, in that location has been little illumination forthcoming and it remains a contentious topic. The investigate findings will throw up a range of interesting possibilities in 2 countries, critical issues and crucial decision-points for government and private bodies to decide upon coronation silver for future action in the favoured country. Therefore, the paper would explores the uneven beginnings of FDI in two countries, examine and present many important theoretical and empirical evidences on FDI and its impact on economy and MNCs, and would find reasons why China is more successful in FDI over India develop a feasible policy modeling towards FDI in particular sector in India or China and making virtually out of it.Chapter 2 Introduction unconnected get up investiture has multiple effects on the investing firm and on the economy of a host country. FDI influences the production, employment, income, prices, exports, imports, sense of balance of payments, economic growth, and general tumescebeing of the receiving economy Maniam (1998). Hence this section covers definition and types of unconnected Direct Investment, FDIs role been so far based on background information, discussion of re character references and finally the theoretical aspect of why and where firms decide to invest abroad for benefits with special reference to India and China alongside host countrys motive to attract FDI. interpretation of FDIBergman (2006) defined FDI as a direct or portfolio investment. A direct investment is an acquisition or construction of physical great(p) by a firm from one(a) source country into a nonher (host) country. The FDI is an investment that involves a long relationship and get a line by a occupier entity of one country, in a firm located in a country other than that of the investing firm. There is more winding in the direct investment than only money capital, for instance, managerial or skillful guidance. FDI is generally defined as resident firms with at least 10% of strange liaison (UNCTAD, 2002).Types of FDIMNCs have various options to enter into a extraneous market. FDIs Different types have different trains of control and risks. For example, Green celestial orbit investment is when a firm establishes a accessory in a novel country and starts its own production. In this type of investment a brand- unsandedfangled plant is constructed rather than the purchase of an existing plant or firm. For this reason, there is large risk and has high set up costs because the irrelevant firm most likely does not have enough law association, nor it has an existing distribution scratchwork and neither a local wariness skills. But still, the international firm has more control.On the contrary, Brown field investment is FDI that involves the purchase of an existing plant or firm, rather than building of a new plant. joint endanger is an fair play and management confederation surrounded by the outside firm and a local firm in the host market. Most host countries prefer the formation of joint ventures, as a way to build world(prenominal) co-operation, and to secure technology ravish (Samli Hill, 1998). In This type of investm ent the foreign partners contribute toward technology or products, the financial resources, and at the same time the local partner provides the manpower, skills and knowledge required for managing a firm in the host country (Bergman 2006). On UNCTADs website we can have a comprehensive discomfitstairsstanding of it and its types. It defines FDI as an investment that involves a long-term relationship and reflects a permanent interest of a resident entity in one economy (direct investor) in an entity resident in an economy other than of the investor. The direct investors idea is to ready forth a significant degree of influence on the management of the enterprise resident in the other economy. FDI covers both the circularizeing and subsequent transaction between the two entities and among affiliated enterprises, both incorporated and unincorporated. FDI may be undertaken by individuals, as well as backup entities. It merely is classified as followsFDI Stock it is the value of the share (For familiar and subsidiary enterprises,) of their capital and militia (including the retained moolah) attributable to the parent enterprise (this is equal to the total assets disconfirming total liabilities), sum the net indebtedness of associate or subsidiary to the parent firm. For branches, it is value of fixed assets and the value of current assets and investments, excluding amounts due from parent, less(prenominal)(prenominal) liabilities to third parties.Reinvested Earnings The part of an affiliates earnings accruing to the foreign investor that is reinvested in that enterprise.FDI Flows FDI flows (For associate and subsidiary enterprises) consists of the net sales of shares and loans (including non-cash acquisitions made against equipment, manufacturing rights, etc.) to the parent company plus the parent firms share of the affiliates reinvested earnings plus total net intra-company loans (short- and long-term) provided by the parent company. And, for branches, F DI flows consist of the increase in reinvested earnings plus the net increase in funds received from the foreign direct investor. impartiality Capital The foreign direct investors net purchase of the shares and loans of an enterprise in a country other than its own.Other Capital Short- or long-term loans from parent firms to affiliate enterprises or vice versa. Also included are profession reference points, bonds and money market instruments, financial leases and financial derivatives.Chapter 3 basis Information and Literature ReviewHistory of FDI in IndiaIndias foreign dispense and investment regime has been identified in two different forms- Pre-1991 reforms phase and the post-1991 phase. Pre-1991 reforms phase that stretched over to four gos is worth reviewing in some situation as although the regime was marked by extensive ordinance of trade and investment, it did not shun foreign enterprise participation in the economy and the nature of the regulatory framework was most ly complex and cumbersome. This has been extensively analysed by Kidron (1965) Kumar (1994). The specification of sectors in which both foreign financial and skilful participation were allowed, those in which only proficient collaboration was permitted, and those in which neither technical and nor financial participation was allowed, reflects the desire to restrict foreign ownership and control to sectors of the economy in which its contribution was deemed to be essential. A preference to technical collaboration agreements instead of foreign equity ownership reflects the desire to advance the twin objectives of preserving freedom from foreign control over operations and concurrently gaining access to foreign technology and know-how. The Foreign Ex variegate Regulation travel (FERA) of 1973 under Prime Minister Indira Gandhi was considered a hostile act. The FERA required foreign firms to dilute their equity holdings to less than 40% or export a substantial share of their total output. This resultant roleed to closure of renowned MNCs like IBM and coca plant Cola to shut their operations in India.1967-79, the number of collaborations agreements per year devoteed an uncomparable low of 242.The Mid- eighties saw a huge though not a radical relaxation of the dirigiste trade and investment regime, with a comparatively benign attitude towards foreign enterprise participation. The major crucial change during this plosive speech sound was a significant change in the pattern of foreign investment in India away from plantations, minerals and petroleum toward the manufacturing sector. By the end of decade of eighties manufacturing accounted for nearly 85% out of total stock of FDI of about Rupees 28 billion. Inflows of private capital remained meagre in the 1980s they averaged less than $0.2 billion per year from 1985 to 1990 (Kapur Athreye 1999).In the year 1991, India too liberalised its highly adjust FDI regime, in place for more than three decades. Argua bly Balasubramanyam (2004) in his bulk stated that, it took an economic crisis for India to liberalise its trade and FDI regime rather than a fundamental change in attitude towards the role of FDI in increase turn. Nonetheless, the 1991 reforms marked a major break from the earlier dirigiste regime with its regulation of the spheres of foreign enterprise participation on its mode of operation. And the policy framework was opaque with the implementation of policy based on bureaucratic servant of each case on its merits. Hence the 1991 reforms were to change all this The abolishment of the industrial licensing trunk, controls over foreign trade and foreign investment were considerable relaxed, including the removal of ceilings on equity ownership by foreign firms. The reforms did result in change magnitude inflows of FDI during the decades of the cabaretties as it considerable relaxed the dirigiste regime that prevailed for more than four decades (Balasubramanyam Mahambare 20 04). Hence with the liberalisation of the economy, fresh foreign investment was invited in a range of industries. Inflows to India rose steadily through the 1990s, exceeding $6 billion in 1996-97. The fresh inflows were primarily as portfolio capital in the early years (that is, diversified equity holdings not associated with managerial control), but increasingly, they have come as foreign direct investment (equity investment associated with managerial control). This was further supported by historically low interest rates in the US that instigated global investment funds to diversify their portfolios by investing in emerging markets. International flows of direct investment, which had averaged $142 bn per year over 1985-90, more than doubled to $350 billion in 1996, with the create countries receiving $130 billion (Kapur Athreye 1999).1996-1998, the period of the coalition government has been an imperative period in our study Singh (2005) classified this as a period when governm ent has shown willingness to understand FDI by placing policies that would result in an increase in FDI and further liberalization for the common cause. There was an increased understanding on the role of FDI in all sectors. Industries still forego the reforms whereby automatic approval of FDI was increased up to 74% by the Reserve Bank of India ( rbi) in nine categories of industries, including electricity extension and transmission, non-conventional faculty generation and distribution, construction and maintenance of roads, bridges, ports, harbours, runways, waterways, tunnels, pipelines, industrial and power plants, pipeline transport , water transport, cold storage and depot for agricultural products, mining services including silver and precious stones, manufacture of agitate ore pellets, pig iron, semi-finished iron and steel and manufacture of navigational, meteorological, geophysical, oceanographic, hydrological and ultrasonic sounding instruments and items based on sol ar energy (indiabudget.nic.in).January 1997, Government announce the first ever guidelines for FDI speedy approval in areas that are not covered under automatic approval. Above trends illustrates the earlier point of the government recognizing and carrying forth of the prior work done by the Rao government. While the advantage of FDI did not reach the mindset of the common man but government seemed to show possibilities of overall development through FDI. For example when Indian industry registered a depressed growth rate of 7.1% in 1996-97, which was much lower than the 12.1% in 1995-96, there was research carried out which revealed this was partially attributable to the mining and electricity generation sectors which recorded very low growth rates of 0.7 % and 3.9 % respectively. Hence, the policy was straightaway rectified and re-enforced by expanding the list of industries eligible for foreign direct equity investment under the automatic approval route by RBI in 1997-1998 (indiabudget.nic.in).2004-05, embraced FDI for being an integral part of national development strategies. Its global popularity along with positive output in augmenting of domestic help capital, productivity and employment has made it an essential tool for initiating economic growth for nations. During this phase, India evolved as one of the most favoured destination for FDI in Asia. It has displaced US as the second-most favoured destination for FDI in the world after(prenominal) China. According to an AT Kearneys FDI Confidence Index, India attracted more than three times foreign investment at US$ 7.96 bn during the first half of 2005-06 fiscal, as against US$ 2.38 bn during the corresponding period of 2004-05. FDI in India has contributed effectively to the overall growth of the economy in the recent times. FDI inflow has an impact on Indias transfer of new technology and innovative ideas, improving home, a combative business environment (Indianground.com).Ballabh (2008) in h is article mentioned about the Balance of payments ( bop) since independence, Indias BOP on its current account has been negative. Since liberalisation in the 1990s (precipitated by a BOP crisis), Indias exports have been consistently rising, covering 80.3% of its imports in 2002-03, up from 66.2% in 1990-91. Although India is still a net importer, since 1996-97, its overall BOP (including the capital account balance), has been positive, largely on account of increased FDI and deposits from NRIs until this time, the overall balance was only occasionally positive on account of external supporter and commercial borrowings. As a result, Indias foreign currency reserves stood at $141bn in 2005-06. Indias recently liberalised FDI policy (2005) allows up to a 100% FDI post inventures. Industrial policy reforms have significantly reduced industrial licensing requirements, take away restrictions on expansion and facilitated easy access to foreign technology and foreign direct investment FDI.History of FDI in ChinaFDIs main source in China from 1950s had been Soviet Union. However, it was after 1978 that China began to open up itself to the rest of the world for FDI inflows. From the start of 1978 China witnessed its exit from its self-dependent strategies since Maos era with the country announcing a remarkable program to reform its economic system by fount itself up to the outside world. From the beginning of 1978, FDI in China became desirable and began to add in the development of the Chinese economy. In general, the development of FDI in China can be divided into following five peglegs.Experiment Stage (1979 1983)China started from an experimental approach, which they called crossing the river by notion the stones under the water. FDI was permitted into China in a step-by-step manner. One severalise action of the first step was the establishment of four Special sparing Zones (SEZs), namely Shen Zhen, Shan Tou, Zhu Hai and Xia Men, in July 1981. These SEZs were chosen for the absorption and utilization of foreign Investment. These provided foreign investors with preferential treatment for their Businesses. As Chinas window to the world, these zones succeeded in attracting FDI. Meanwhile, China was putting up effort to complete its legislative system. First to come was, the comeliness Joint Venture impartiality (the law of Peoples Republic of China on Joint Ventures Using Chinese and Foreign Investment) that was enacted in July 1979. The legislation clear the existence of FDI in China and guaranteed the right and benefits of foreign investors. Second important policy taken at this stage included Regulation for the effectuation of the Law of the Peoples Republic of china on Chinese -foreign Equity Joint Ventures (1983).Growth Stage (1984 1991)Until 1984 there were flaws in Chinas handling FDI. Chinas restraints on FDI outside the SEZs remained rigid. Laws and regulations limited foreign ownership. FDI projects often encountered a long approval process even though they provided sufficient materials and explanation. This was simplified gradually between 1983 and 1985. quest is the list of new laws and regulations at this stage year on year basis.Wholly Owned Subsidiaries (WOS) Law (1986)Provision for the FDI Encouragement (1986)Constitutional attitude of Foreign invested first steps in Chinese Civil Law (1986)Adoption of slowdown provision on guiding FDI (1987)Delegation on approval of selected FDI projects to more local governments (1988)Laws of cooperative joint ventures (1988)Revision of equity joint venture law (1990)Rules for implementation of WOS law (1990)Income tax law and its rules for implementation (1991)1984 witnessed two historic activities. First was when Deng Xiaoping remarked that China needed to open wider instead of checking upon the opening process (Zheng, 1984). Second was when Chinese government announced the decision on reform of the economic structure, and called for the building of a socialist commodity economy by assigning a larger role to the market in the domestic economic. Besides SEZs, Chinese government took a further step to give FDI access to other parts of the country. Fourteen coastal cities were announced to be subject to the outside world. They are Dalian, Qinhuangdao, Tianjin, Yantai, Qingdao, Lianyungang, Nantong, Shanghai, Ningbo, Wenzhou, Fuzhou, Guangzhou, Zhanjiang and Beihai. The local government from these cities could sanction FDI projects with capital investment up to certain level. For example, Shanghai could approve all FDI projects under 30 million USD (Yuan, 2006). They were also given the right to omit foreign exchange yielded by local FDI for their own growth. The approval procedures for FDI projects were eased. The Law of Peoples Republic of China on Wholly Foreign-owned Enterprises (WFOEs) of 1986, was laid to protect the profits and interest of foreign investors. In addition to this series of other laws and regulations further relaxed Chinas restriction in promoting FDI with measures for enterprise autonomy, profit remittances, labour recruitment and cut use.In December 1990, the central government promulgated Detailed Rules and Regulations for the execution of instrument of the Peoples Republic of China Concerning Joint Ventures with Chinese and Foreign Investment. The regulation aimed to encourage joint ventures that adopted sophisticated technology or equipments, saved energy and raw materials and upgraded products.Peak Stage (1992 1993)This stage has witnessed the rise of Shanghai as Chinas economic hub. The Chinese government wanted to develop Shanghai into an international hub for finance, economy and trade. Their mark was to carry out the experiment of new policies and confine successful practices within the rest of Shanghai and across the country. Shanghais location in Southeast China drew attention of Chinese governments in fault emphasis to the area to avoid overly concentration of FDI. H i-tech enterprises, open manufacturers and financial companies were encouraged to set up their China operation at Pudong with various preferential treatments from central and local government. With the implementation of a new framework for further opening up the economy, the Chinese government showed great effort to encourage FDI. A number of new Sectors were also opened up to foreign investors, including banking and insurance, accounting and information consultancy, wholesaling and retailing at the same time, governmental procedures were simplified in terms of FDI administration.The year of 1992 witnessed the remarkable growth of FDI in China. In the same year, the Chinese government announced its intention to adopt the strategy of socialist market economy and improve the economic framework for standard market Operations. Following are the series of laws and regulations related to market operations were passed during 1992 and 1993, which includedAdoption of Trade Union Law (1992)C ompany Law (1993)Provision regulations of value-added tax, consumption tax, business tax and Enterprise income tax (1993)Adjustment Stage (1994 2000)After 1994, the growth rate of FDI in China went down to a steady level from the relatively high rate in past two years, which indicated that a new stage had arrived.1995s Provisional Guidelines for Foreign Investment Projects provided preferential treatment to various enterprises in various industries. The directory of the Guidelines categorized all the FDI projects into four types encouraged, restricted, prohibited and permitted (Yuan, 2006).The projects in infrastructure or underdeveloped agriculture and with advanced technology or manufacturing under-supplied new equipment to satisfy market demand fell into the encouraged category. Those whose production exceeded domestic demand and those who engaged in the exploration of rare and valuable resources were put into restricted. The prohibited category included projects that would ris k national security or public interest, or those endangering military facilities.. The last one is classified as permitted. Annual utilization of FDI reached to its peak in 1997 and 1998 but then locomote downward in the following two years.Post-WTO Stage (2001 present)November 11, 2001, saw Chinas memory access as an official member of the World Trade Organization (WTO), after a 15-year negotiation. It was after accession to WTO, China started to fulfil its obligation much(prenominal) as basic principles of non-discrimination, pro-trade and pro- opposition. This historic event had significant Impact on FDI inflows to China. This gave incentives to more export-oriented FDI. Chinas export market becomes larger and more predictable. Also, Chinas domestic market attracts FDI in industries where there is large market potential. Usually, these industries used to be rule by relatively ineffective state-owned enterprises, much(prenominal) as telecommunication, banking and insurance. Foreign investors, peculiarly large multinational companies (MNCs), have now growing interest in these industries. Becoming a WTO member, China had to restructure its legal framework. This, in consequence, improves Chinas business environment and helps attract more foreign investment.Yuan (2006), in his literature has revealed, throughout the years, China has steadily reduced its industrial tariffs in a wide range of sectors. Foreign firms are granted direct avocation rights for the first time, which means they can import and export themselves without going through a Chinese state-owned trading firm. Clearly, Chinas acquiring WTO membership boosts investors confidence the Chinese economy and its market and thus attracts more FDI inflows.FDIs Critical AnalysisFDIs in other countries are now been continuously studied. There are many factors and studies motivating this type of investment for the benefit of source and host countries. There has been a substantial change in policies an d attitudes towards FDI on the part of most developing countries in recent years. Disbelief and suspicion of FDIs in the past now appears to have given place to a new build faith in its ability to encourage growth and development for the investing firm and host countries. This perception is due to number of factors steep decrease in alternative sources of finance such as bank credit in the wake of the debt crisis, the self-evident success of Asian countries like India and China, and growth in Knowledge and understanding of the nature and operations of multinational enterprises (Balasubramanyam Mahambare, 2004). In regards to stability aspect of FDI toward the growth of investing firm and host countries, empirical studies have found FDI to be more stable than other forms of capital (UNCTAD, 1998, World Investment Report, Geneva). Examination of a variety of capital flows in developing countries during East Asian financial crisis revealed FDI was more stable than other capital flow s past studies analysis that FDI is the result of certain competitive advantage. capital of Minnesota et al. (2002), revealed in their book many developing countries like India favour FDI over other capital inflows and there is a substantial benefit that such investment benefit the host country and thereby attracting more foreign firms for investment as the benefits in this form of investment is both ways. sagacious the benefits of FDI in host countries would make the legislation system clear and simpleton and would enable foreign firm for investment based on long-term profits. Swamy (2000) in his book has done calculation the rate of repossess of FDI in India. His results revealed the rate of return on FDI in India higher(prenominal) than the rate of return obtained on global outward FDI. To quote from his studies, FDI Enterprises were able to earn relatively higher profit rates in India, despite higher level of taxation and tariffs etc. Thus the low level of FDI Inflows until th e end of 1980s seems to have been caused restrictive policy environment rather than profitability considerations. Pradhan (2000) has scrutinised the various aspects of FDI from source as well as Host countries point of view, with a focus on the risk from the firms perspective and on the strategies to attract FDI to be adopted by host countries. His study thereby revealed that the higher rate of return for an MNC comes with FDI is, in fact, the result of existing market opportunities combined with the host countries policies towards FDI. Thereby, Indicating strong signals of overall growth of Host countries (developing) in conjunction with FDI and higher rate of return for MNCs.Lensink Morrissey (2001), literature suggests that FDI by MNCs is one of the major convey in providing LDCs (least developed countries) with access to advanced technologies and generating high revenue for MNCs involved in investment for them. The underlying theory differs illustrates the benefits of FDI for MNCs and host countries.The imitation line of work is based on the view that domestic firms may become more Productive by imitating the more advanced technologies or managerial practices of Foreign firms for foreign firms and at the same time adding to GDP for their own country. Also, the competition transplant emphasises that the entrance of more foreign firms from abroad intensifies competition in the domestic market, thereby encouraging domestic firms to become more efficient and productive by upgrading their technology base.The linkages channel stresses that foreign firms may move new technology to Domestic firms through transactions, and would develop buyer-seller relationship. This would necessities Training from the foreign firm to the domestic firm. Hence the training channel needs to be enforced on new technologies. This can only be adopted when the labour force feels comfortable to work with their foreign partner and when embraced works for the benefits of foreign firm s as well.Beside these studies, in some of the literature the contribution of FDI to foreign firm and host countries economic growth has been debated quite extensively. Findings reveals that FDI has both humane and a dangerous impact. Empirical evidence that FDI generates positive spillovers for firms is mixed. Few studies have found positive spillover effects, few finds no effects and few even conclude that there are negative effects (see Aitken and Harrison, 1999). The conventional argument is that an inflow of FDI positively contributes as it brings technology, know-how and management techniques. It integrate the operation of local firms into the networks of foreign investors, it helps to place local production on international markets and integrates the national economies into worldwide production and distribution systems. Hence, concluding that FDI can contribute positively and increase the export activity of the host economy (Adam 2002). On the other hand, some of the recent literature points to the role of FDI as a channel of international technology transfer. It can deliver rather controversial effects. Foreign firms can out-compete local producers, reduce local production capacities close down research and development units, break up traditional subcontractor relationships and substitute them with merchandise goods, and repatriate profits thus deteriorating the balance of payments position of the host economy. Sometimes, could lead to absolute shut-down of foreign firms when opposed by local people of host countries. For example Coca-Cola Company had shut down bottling plant in India during a community-led campaign that demanded the closure of the Coca-Cola bottling plant because of indiscriminate pollution as well as illegal occupatio

Role of Elevated Levels of Homocysteine in Blood Plasma

Role of Elevated Levels of Homocysteine in job PlasmaHomocysteine, a non-protein amino stinging, is an intermediate in the metabolism of methionine and biosynthesis of cysteine. It has gained prominence in the past half-century beca theatrical role its accumulation in the body has been connect to amplificationd risk and occurrence of atherosclerosis and cardiovascular disease. Homocystinuria is oerimputable to errors in metabolism and homocysteinemia is attri thoed to polymorphisms in the genes obscure in methionine metabolism and cysteine biosynthesis, and deficiencies in the nutrients folic acid, and vitamins B12 and B6. deduction of these do- nonhing be put together in the results of genic and feedary studies. The clinical quantification of homocysteine has evolved through the years and turn tests be currently available. Baseline homocysteine intentness for normal big(a)s has been identified to be between 12-15 mol/L. Elevated directs of homocysteine tail assemb ly be shortend with pteroylglutamic acid and B vitamins supplementation, but this intervention does not work in patients who boast suffered stroke or mall attacks. to a greater extent than research studies rush supported the hypothesis that elevated homocysteine causes CVD and is not honourable a marker for the disease. However, despite the amount homocysteine research per numbered, umpteen some other(prenominal) issues quell to be resolved, among which atomic number 18 the elucidation of the molecular mechanism of the direct consummation of homocysteine and the precedentization of techniques for the quantification of homocysteine levels.Brief introduction. cc wThe parting of elevated levels of homocysteine in neckcloth plasm has been the subject of intense conceive and literature go oers for more than 50 years since an connector between defects in homocysteine metabolism and thromboembolism was discover. This character was further confirm in patients with hom ocystinuria and abnormalities in vitamin B12 metabolism with general vascular damage and widespread thrombosis. Subsequently, the homocysteine theory of arteriosclerosis was formulated by McCully and Wilson in 1975. Since and thusly, the positive association between the risk of cardiovascular disease and homocysteine levels in the general population was validated in many epidemiological studies (Boushey, et al., 1995 Verhoef, et al., 1996 Eikelboom et al., 1999 Humphrey et al., cc8). Signifi seattly, these studies found that wee increases of homocysteine levels in ancestry increase the risk of coronary subject matter disease. Another important finding was the role of diet, vitamins and folic acid in impenetrable homocysteine levels.Some authors arouse questioned the direct homocysteine-cardiovascular disease link, basing their conclusions on a review of longitudinal, prospective studies (Kaul, Zadeh and Shah, 2006). Accordingly, the evidence is not strong enough to warrant a causal effect, the mechanisms for how homocysteine causes cardiovascular disease has not been elucidated, and that there has been no verification showing that interventions of decreasing homocysteine levels have modified the risk for atherosclerosis (Kaul, Zadeh and Shah, 2006). Moreover, homocysteine has been proposed to be a marker, and not a cause of CVD (Wierzbicki, 2007).Recent studies have proposed a mechanism on change magnitude risk of cardiovascular disease (CVD) due to elevated homocysteine. Inhibition of the growth of endothelial jail cells and promotion of vascular thawny muscle cell proliferation results in damage of vascular cells (Zou, 2007). The abnormality in the drudgery of endothelial cells was ca apply by homocysteines inhibition of desoxyribonucleic acid methyl radicalation in the booster station region in the gene of an activator of the cell cycle (Jamaluddin, et al., 2007).Amino acid and focus on cysteine. 300 w each living cells break off the biomole cules proteins, carbohydrates, nucleic acids and lipids (Mathews and Van Holde, 1996 McKee and McKee, 2004). These be made up of the repeating sub-units of amino acids, sugars, nucleotides and juicy acids respectively. Cells similarly contain small organic molecules that atomic number 18 involved in complex biosynthetic and regulatory pathways that ar tightly overtopled at the molecular level.Amino acids argon naturally occurring compounds containing an amino theme, a carboxyl group, and a unique side chain or R group (Figure 1). The chemical substance substance and kick the bucketal properties of an amino acid argon largely determined by its R group (McKee and McKee, 2004 Mathews and Van Holde, 1996).Although there are hundreds of amino acids, exclusively twenty have been identified to be building blocks of proteins. Among these is cysteine, which contains a sulfhydryl, or thiol (SH) in its R group (-CH2-SH) (Berg, Tymoczko and Stryer, 2002). The sulfhydryl group is very reactive and could react with another thiol group, forming disulfide bonds or sulfide bridges. These bridges are important in increasing the stability of somewhat proteins. Two sulfhydryl moieties of two cysteine bonds can oxidate forming cystine. This jointly occurs in extracellular fluid same affinity and urine. However, the solvability of cystine is very let out, and in large amounts, cystine can cause kidney stones (McKee and McKee, 2004).The sulfhydryl mediety in addition forms weak bonds with nitrogen and oxygen.Another amino acid which contains a sulfhydryl group is methionine. Its side chain is -CH2CH2SCH3. The sulfur in methionine can form bonds with electrophiles (Berg, Tymoczko and Stryer, 2002). The methyl group (-CH3) can be activated and is involved in many reactions where just one carbon atom is being added to another compound.Cysteine is considered a non-essential amino acid because it can be synthesized de novo in both plants and animals (Figure 2). In anim als, cysteine is formed from the cleavage of cystathionine through the action of -cystathionase. Cystathionine is produced when serine condenses with homocysteine that is derived from methionine (McKee and McKee, 2004). Methionine, an essential amino acid, cannot be synthesized in humans, and thus, have to be provided in the diet. Its metabolism involves homocysteine.Homocysteine structure and metabolism. 200 wHomocysteine is a non-protein amino acid and thus, it is not utilized in protein synthesis. Its structure is similar to cysteine but it has an additional carbon before the sulfhydryl moiety (R group -CH2 -CH2 -SH). The tendency of homocysteine to form cyclic compounds whitethorn have limited its potential as a protein building block.Homocysteine is not provided in the diet, but is biosynthesized from methionine in a treat involving some(prenominal) steps. Methionine is first adenosylated to form S-adenosyl methionine (SAM), and and so the methyl group is movered to an acc eptor molecule to form S-adenosyl homocysteine (SAH) in a process called transmethylation. Adenosine is accordingly removed thereby forming homocysteine (Figure 3) (Durand et al., 2001 Selhub J. , 1999 Marinou, et al., 2005). Transmethylation is the nevertheless pathway for producing homocysteine in the body. Homocysteine then undergoes two pathways remethylation to methionine, and transsulfuration to produce cystathionine, cysteine, pyruvate and taurine. Remethylation requires folate and cobalamin (vitamin B12), and transsulfuration requires pyridoxine (vitamin B6). Homocystinuria results from genetic errors in the metabolic pathways (Kluijtmans, et al., 2003 Klerk, et al., 2002), but the current focus is on the more common hyperhomocysteinemia that results from genetic variations or nutritional inadequacy (Finkelstein and Martin, 2000). Polymorphisms in the gene methylenetetrahydrofolate reductase (MTHFR) which catalyzes the transfer of a methyl group to homocysteine to re-form methionine have been found in many studies to increase homocysteine levels (Klerk, et al., 2002).Among the proposed effects of increase homocysteine levels resulting in CVD are oxidation of depression density lipoprotein, decrease in the thrombomodulin expression inhibiting the anticoagulant pathway maven story to thrombosis, surfacelet activation and aggregation, and smooth muscle cell proliferation (Eikelboom, et al., 1999 Jamaluddin, et al., 2007).Normal Homocysteine levels. 200 wThe concentration of circulating heart and soul homocysteine (tHcy) is an accurate marker of let out folate and vitamin B12. In 1999, 3563 male participants and 4523 female participants were surveyed to determine the normal melody homocysteine levels (Selhub, et al., 1999 Selhub, 1999). The survey found that homocysteine increased with age and was high(prenominal) in adult males than and females. Screening of babies confirmed that homocysteine levels are higher in baby boys (Refsum, et al., 2004). It was recommended that livestock homocysteine levels equal to or greater than 11.4 mol/L (males) and 10.4 mol/L (females) are to be considered above normal and was associated with down(p) vitamin concentrations in two-thirds of the subjects surveyed (Selhub, et al., 1999). This verified that an assessment of homocysteinemia requires the knowledge of the health status of the patient.The degree of homocysteinemia is classified base on ratiocination fasting levels of serum homocysteine. Currently, a subscriber line plasma tHcy level of 15 mol/L is considered as normal (Refsum, et al., 2004). In vigorous adults with good folate and B vitamins status, the upper reference limit is 12 mol/L. Accordingly, homocysteinemia is classified as moderate (15-30 mol/L), intermediate (30-100 mol/L) and severe ( 100 mol/L). This categorization is necessary to come up with a decision regarding the treatment of the condition.Homocysteine and nutrition. 300 wStudies have shown that the enzymes regulating the metabolism of homocysteine are activated by the B vitamins and folate which can be sourced from the diet. The balance of the remethylation and transmethylation pathways are coordinated by nutritional inputs, specifically methionine (Selhub, 1999). Decreasing dietary methionine increased homocysteine remethylation, magic spell increased methionine increased the production of cystathionine through upregulation of the transsulfuration pathway. The molecular mechanisms for the effects of dietary methionine are based on the capacity of S-adenosyl methionine SAM to inhibit methylenetetrahydrofolate reductase (MTFHR) and activate cystathionine synthase (Selhub and Miller, 1992). Thus, when dietary methionine is high, there is a speedy conversion of methionine to SAM. The high levels of SAM promote the inhibition of MTHFR and subsequently, remethylation of homocysteine is as well as depressed. The pathway is channeled to the transsulfuration pathway, to produce cysteine. In opposite conditions of low dietary methionine, low SAM levels are not enough to inhibit MTFHR activity, resulting in the remethylation of homocysteine.The role of folate in homocysteine metabolism has been the subject of many research studies (Antoniades, et al., 2009 Boushey, et al., 1995 Lonn, et al., 2006). A diet that is poor in folate was to a fault found to corrupt remethylation and synthesis of SAM (Miller, et al., 1994). Folate deficiency increased the concentration of tHcy and liverwort SAM concentration. Introducing dietary folate and methionine as well as decreased tHcy. Since vitamins and trace minerals are lost due to food processing, fortification is proposed in order to refill the lost nutrients. Folic fortification of breakfast cereals when consumed daily was recommended to be the most impelling means of decreasing serum folate (Riddell, et al., 2000). High-dose folic acid supplementation alike decreased tHcy levels in cases where there is vitamin B12 deficien cy (Min, 2009). However, a high methionine diet is not recommended since it can decrease body weights and HDL-cholesterol production in mice (Velez-Carrasco, Merkel and Smith, 2008). forth from the observed effects of folic acid on reducing tHcy concentrations, folic acid is also thought to be involved in ameliorating endothelial dysfunction through its action of maintaining endothelial nitric oxide synthase in its coupled landed estate which favors the formation of nitric oxide, and not oxygen radicals (Moens, et al., 2008).Role of Homocysteine and vitamins. 200 wThe enzymes involved in metabolism of homocysteine require the participation of vitamin cofactors B6 and B12, and folic acid. The direct association between low folate, vitamin B6 and B12 status and hyperhomocysteinemia have been validated many multiplication Hao, et al 2007 (Hao, et al., 2007 Boushey, et al., 1995 Kluijtmans, et al., 2003 Koehler, et al., 2001). Investigations have geared towards the probability of usi ng these vitamins in the legal community and treatment of homocysteinemia in the general population, and in those who already have cardiovascular disease. The use of multivitamins supplementation for several months improved the concentration of the B vitamins and folate acid in plasma, and decreased homocysteine and LDL cholesterol levels in 182 study participants (Earnest, Wood and Church, 2003). interchangeable homocysteine-lowering effects were also observed in patients with celiac disease, who have malabsorption problems, who take vitamin supplements (Hadithi, et al., 2009).However, the case for the vitamins is different in patients who already have CVD. Although the treatment of different combinations of vitamins B6, B12 and folic acid of patients with coronary arterial blood vessel disease resulted in a 30% reduction of tHcy one year after receiving vitamin B12 and folic acid, consume evaluatements of homocysteine levels showed that the vitamin supplementation did not sig nificantly affect the add together cardiovascular events (Ebbing, et al., 2008). Thus, the findings do not support the use these vitamins for secondary prevention of coronary artery disease. The Norwegian Vitamin Trial (NORVIT) also found that vitamin supplementation did not reduce the risk of cardiovascular disease recurrence after a heart attack (Bnaa, et al., 2006). Moreover, preliminary results of the NORVIT suggested that the B vitamin treatment increased risk of cancer, and that such treatment should not be given.Role of Homocysteine in atherosclerosis. 500wMany studies since the sixties have validated the relationship between hyperhomocysteinemia and risk of atherosclerosis (Eikelboom, et al., 1999). dire hyperhomocysteinemia (homocysteine levels greater than 100 mol/L) can be ca apply by several inherited genetic disorders. Foremost among the disorders are mutations in the gene convert for the major transsulfuration enzyme cystathionine -synthase, remethylation enzymes methylenetetrahydrofolate reductase, methionine synthase in the methionine cycle, or defects in vitamin B12 metabolism (Finkelstein, 1998 Kraus, 1998). These genetic conditions lead to extreme elevations of plasma homocysteine and early atherothrombotic disease, where the typical pathologic features of endothelial injury, vascular smooth muscle cell proliferation, and progressive arterial stenosis are observed. While these genetic errors in metabolism are rare, they gave researchers a work for studying cardiovascular injury that was associated with high homocysteine levels. The clinical and pathologic features observed under the conditions of homocystinuria resulted in the homocysteine theory of atherosclerosis that declared high plasma homocysteine concentrations to be responsible for vascular damage.Results of individual studies and meta-analysis have come up with support for the homocysteine theory of atherosclerosis. However, there are still controversy over whether homocystein emia causes CVD or vice versa, or is it that homocysteinemia is just a marker or indicator of CVD. Mounting evidence for the causal effect of homocysteine was backed up by basic and cellular studies which utilized advanced molecular and genetic techniques. Early studies infer that homocysteine damages the endothelial cells lining the blood vessels and increase the production of vascular smooth muscle (Berg, Tymoczko and Stryer, 2002). From a pathophysiologic point of view, homocysteinemia is associated with increased oxidative stress in the cells, and development of thrombosis (Tyagi, et al., 2005), impaired endothelial function (Stuhlinger, et al., 2001) and the activation of inflammatory pathways that are in the raw to changes in cellular oxidation-reduction states (Weiss, et al., 2003).It was originally proposed that homocysteinemia promotes the accumulation of S-adenosyl homocysteine, a potent inhibitor of cellular desoxyribonucleic acid methylation (Zou, 2007). The hypomethyla tion of DNA could affect promoter activity resulting in remodelling of chromatin granule and changes in the recording of certain genes. However, it was found that In the case of homocysteinemia, increased tHcy levels cause the hypomethylation of DNA promoter region of the cyclin A gene (Jamaluddin, et al., 2007 Zou, 2007). Cyclin A protein is a sub-unit of cyclin-dependent kinases (CDK) that activates CDK during the cell cycle. In the presence of high tHcy concentration, methylation was inhibited at two CpG sites in the cyclin A promoter, resulting in a 6-fold increase in promoter activity, and indeed increased proliferation of endothelial cells. Homocysteine directly inhibited the activity of DNA methyltransferase I (DNMT1) by 30% (Jamaluddin, et al., 2007). Furthermore, homocysteine lessen binding of methyl CpG binding protein 2, while it also increased the binding of cyclin A promoter to histones H3 and H4 which led to chromatin remodelling.Review modes of analysing homocyste ine and differences between measurements. 2800 wTotal homocysteine, tHcy, is the sum of all chemical species of homocysteine that is present in the blood (Figure 4) (Ueland, et al., 1993 Refsum, et al., 2004). As mentioned earlier, only a small portion of the tHcy comes from free homocysteine, a large portion comes from mixed disulfides and protein-bound homocysteine. All the checkouts used to quantify tHcy cleave and convert all these forms into a iodin species by adding a reducing mover, therefore what is measured is the reduced form. rake for homocysteine determination is collected in tubes. If plasma homocysteine is to be measured, the tube contains anticoagulants like EDTA, heparin or sodium citrate. If serum homocysteine levels are to be determined, then the samples are allowed to coagulate, which takes thirty minutes and not more, to reduce the risk of increased homocysteine levels coming from the cellular fraction of blood (comprised of red blood cells and platelets). inc rease release of tHcy from cells also makes it necessary to centrifuge and separate blood components inwardly 30 minutes of collection. Centrifugation eon and speed are relatively low (5 min and 300g respectively, for example) and is performed at 4 C. The supernatant (serum/ plasma fraction) that is collected may be analyzed right off, or stored for 2-3 weeks in the refrigerator or fixed for 2-3 months (Homocysteine, 2008). It is possible to store the samples once processed because the homocysteine levels have been shown to be unchanging after separation of plasma/serum from the cellular fraction (Refsum, et al., 2004). there are reports showing that tHcy in serum can remain fixed for several years if stored at -70 C.Scheme for the steps followed in the determination of total homocysteine from blood serum or plasma. (Hcy-SR, Hcy-mixed disulfide EC, electrochemical detection LC, still chromatography CE-LIF, capillary electrophoresis with laser-induced fluorescence detection Ab, antibody EIA, enzyme immunoassay FPIA, fluorescence polarization immunoassay MS-MS, in tandem nap spectrometry). Figure from Refsum et al., 2004.The first step is to generate free homocysteine by chemical reduction of disulfide bonds using dithioethritol, sodium borohydride, n-tributyl phosphine, 2-mercaptoethanol and phosphine tris (2-carboxyethyl) phosphine, which is water-soluble (Jacobsen, 1998). After the reduction, homocysteine is disjunct from the cysteine, glutathione and cysteinylglycine, low molecular weight thiols, by HPLC. Homocysteine can also be derivatized for heavy weapon chromatography determination/ HPLC or subjected to immunoassay (Jacobsen, 1998 Refsum, et al., 2004).The development of the mannerologies for determining total homocysteine started in the 1980s. There are many variants of the regularityologies, but they can be categorized into three general methodologies (1) chromatographic, (2) enzyme immunoassays and, (3) enzyme cycling.Chromatographic methodsThe earliest methods used were the chromatographic methods, of which high pressure liquid chromatography (HPLC) is more used compared to gas chromatography (GC). Variations in the methodology include the combination of liquid chromatography (LC) with mass spectrometry (MS) and GC with MS. The equipment and the skill requirements for these techniques have limited their use mainly in research laboratories.In the HPLC method, the reduced samples are deproteinated and then directly separated on an ion exchange column. The separated homocysteine molecules undergo derivatization with ninhydrin (a chromophore for colorimetric quantification), or fluorescent compounds (e.g. fluorescamine, SBD-F). Alternatively, the reduced homocysteine molecules are first derivatized before separation through reversed-phase HPLC. 6-Aminoquinolyl-n-hydroxylsuccinimidyl carbamate (AQC) is a fluorophore that gives higher sensitivity when used to derivatize cystathionine and homocysteine (Seo, 2005).The derivatized samples are then passed through an ion exchange column. The distance of time that it takes for the sample to go through the column is called the retention time. The samples loss the column pass through a detector, which could be a UV absorbance detector (spectrophotometer), a fluorescence detector or a mass spectrometer which is a powerful detector. The detectors quantify the samples, and send signals to a recorder which produces the chromatogram, where quantities can be seen as full stops.An internal standard of known quantity is used in the determination of the actual quantity of the sample. Normally, the internal standard should have a retention time that is the same as homocysteine. Internal standards are added to the sample tubes and derivatized together with the reduced homocysteine. To quantify homocysteine, the tHcy peak area is compared with the peak area of the standard eluted at the same retention time.Although there are many advancements in the HPLC techn ology, tHcy quantification using this method is relatively slow, time-consuming, requires very studious sample preparation and handling, and skilled technicians. Sample pre-treatment requires 30-60 minutes, while an HPLC run takes 10-30 minutes. Samples are run sequentially, which makes HPLC not suitable for high throughput determinations.Some laboratories use gas chromatography or gas chromatography with mass spectrometry to get more sensitive results. The principles behind GC and HPLC determination are similar, except that in GC, the samples are vaporized and passed through a gas before elution from a column. Similar to HPLC, GC is also more time-consuming compared to other methods.Homocysteine of modify blood samples have been determined using reversed phase HPLC (Bowron, et al., 2005). In this technique, blood samples were collected in tubes that contain potassium EDTA. After mixing gently, the blood was spotted on filter paper cards that are used in standard neonatal screenin g. The cards were air-dried and stored at populate temperature until analysis. Six-mm discs of the cards were punched out, and incubated in tubes with an internal standard and a deproteinization agent. The produced thiols were then derivatized for fluorescent detection, and separated by reversed phase HPLC. The resulting measurements showed that the method was linear up to a homocysteine concentration of 140 mol/L, in comparison with HPLC of plasma homocysteine which showed a linearity up to 200 mol/L. The coefficient of variation inwardly a batch of measurement was 5% and within batches was 8%. HPLC of plasma samples was only 1% within batch and 4% between batches. computer memory of the dried blood sample spots for more than 24 hours in room temperature decreased the homocysteine concentration, probably due to the hemolysis of whole blood during drying. The hemolysis could have been accompanied by the denaturation of enzymes that release homocysteine from blood cells. Overall, although the use of dried blood samples offers flexibility in sampling and storage, the assay had lower precision compared to HPLC. It may not be able to quantify dried blood homocysteine in newborns because its lower limit of detection is above the levels that some healthy neonates have. The method can be used in the detection of homocysteinuria.A more rapid protocol for tHcy measurement is liquid chromatography electrospray ionization-tandem mass spectrometry (LC/MS/MS) (Gempel, et al., 2000). It removes the derivatization step and can perform 400 analyses daily. kind samples are applied to filter cards that are used for neonatal homocysteine screening. The cards are incubated in the presence of a reducing agent and a deuterated internal standard. The tHcy is then extracted in an acetonitrile solution and loaded on a cyano column. Eluates are ionized with an ion spray device before press release through a mass spectrometer. The procedure makes use of an autosampler, which hasten s the analysis. The advantage of the method is the removal of the derivatization step, because the mass spectrum is determined directly. Impurities of the samples are removed by red them through the cyano column. Since the procedure takes only 3 minutes to finish 1 sample, more samples can be processed in less time compared to HPLC (Gempel, et al., 2000).An innovation in a high throughput liquid chromatography-tandem mass spectrometry method is the use of a 96-well plate format that skips precipitation, centrifugation and derivatization. Plasma samples, calibrator and control were mixed well in 96-well plates. From each well, an aliquot was transferred to another plate with sodium hydroxide solution (diluent) and dithioethritol (or another suitable reductant). After organic shaking and a short incubation period, the plate was placed in the autosampler for LC-MS/MS analysis. Comparison of the results with those obtained by HPLC showed that the LC-MS/MS method gave consistently high er homocysteine readings, which was attributed to the use of different standards by the two methods. The biggest advantage of the new method over HPLC was the expense, because LC-MS/MS reduced the costs for material and manpower by more than 50% (Arndt, et al., 2004).Enzyme ImmunoassayThe immunoassay-based tests for homocysteine were developed in the 1990s. Most assays hire a mouse monoclonal antibody antibody against S-adenosylhomocysteine (SAH), which is formed when adenosine and S-adenosylhomocysteine hydrolase are added to reduced total homocysteine of the plasma/serum sample. The earliest report on the procedure involved the use of flouresceinated SAH as tracer. This method is fluorescent polarization immunoassay or FPIA. After SAH is generated, it is mixed with a fluorescein-tagged SAH. The mixture is coated onto a microtiter plate, then made to bind with mouse anti-SAH (Figure 6). When antibody-SAH bind, the changes in fluorescent polarization of the SAH-tracer are detected and serve as basis for the quantification after a standard curve of known homocysteine calibrators is constructed (Shipchandler and Moore, 1995).The newer versions of enzyme immunoassays were performed on microtiter plates and used the formation of colored complexes to measure absorbance which was used as the basis of the quantification (Figure 7) (Frantzen, et al., 1998). After the conversion of reduced tHcy to SAH, another enzyme is added to the mixture to hydrolyze the excess adenosine. After reaction with a monoclonal anti-SAH antibody, a specific anti-mouse-antibody is added, which forms a colored product that can be detected spectrophotometrically for quantification.The immunoassays are simpler to perform compared to chromatography because they do away with the derivatization step and the valuable equipment needed in chromatographic separation. The method has been proven to be rapid and precise. The coefficient of variation between and within assay is 8% and less than 6% res pectively, and the results also correlated well with those obtained using HPLC. The advantage of the immunoassay over HPLC is speed and ease of determination (Frantzen, et al., 1998). Many samples can be run simultaneously on several microtiter plates, which make the immunoassay ideal for routine screening. Furthermore, the technique can be and has been fully change using robotics technology, and is super flexible and can be used on different uninflected platforms.Other similar imunoassays have been developed. In a variant of the assay, recombinant homocysteine lyase, converts homocysteine into -ketoglutarate, with the ontogenesis of ammonia and H2S (Tan, et al., 2000). A second reaction reacts H2S with N,N-Dibutylphenylene diamine (DBPDA) resulting in the formation of form 3,7-bis(dibutyl amino)phenothiazine-5-ium chloride, a highly fluorescent compound. Both highly purified recombinant homocysteine lyase and DBPDA were synthesized in the authors laboratory, which someways limi ts the utility of the procedure because their production requires skill and specialized equipment.Another assay utilizes the recombinant enzyme, methionine -lyase, and the commercially available fluorophore N,N-diethyl-p-phenylenediamine (Chan, et al., 2005). The rest of the procedure is similar to that used in typical immunoassays. The method can be used in an automated analyzer or manually, which makes it ideal for laboratories that cannot afford the expensive automated analyzers. Although the recombinant enzyme was purified only from a crude extract of E. coli, the results compared well with those that were obtained using HPLC. These results showed that the need for tiresome and careful purification procedures can be removed. However, a main drawback was the non-specificity of the enzyme for homocysteine it also reacts, although with less specificity, with cysteine which is present in larger amounts than homocysteine in the plasma. Thus, the use of pure homocysteine as calibrat or is not suitable for the assay. Instead, the recommendation is to use pooled plasma as the calibrator, but this requires the determination of the tHcy by HPLC, which complicates the procedures for small laboratories who do not have access to HPLC equipment. Moreover, the precision of the procedure is also lowered if samples are diluted, because this also reduces the amount of cysteine in the sample relative to its concentration the calibrators. The presence of cysteine is also the cause for the lower sensitivity of this assay, because at lower tHcy levels the background fluorescence due to cysteine is amplified (Chan, et al., 2005).Enzyme cyclingThe most recent method for tHcy determination is the enzyme cycling method which amplifies the detection signal to improve the sensitivity of the detection (Figure 8) (Dou, et al., 2005). Similar to the prior methodologies, all protein-bound and oxidized forms of homocysteine are first reduced to free homocysteine. Next, methionine and S- adenosyl homocysteine (SAH) are formed from the methylation of free tHcy by the action of the enzyme homocysteine methyltransferase with S-adenosyl methionine as methyl sponsor or co-substrate. The SAH so formed comes from SAM and the transmethylation reaction, and not from the free homocysteine molecules. Upon formation, SAH is hydrolyzed immediately to homocysteine and adenosine by SAH hydrolase. The homocysteine originating from SAM enters the homocysteine transmethylation reaction catalyzed by homocysteine methyltransferase to form homocysteine and methionine again, resulting in an enzymatic cycle and an increase in detection signals. The reactions caus