International Banking Assignment Example | Topics and Well Written Essays - 4500 words

International Banking - Assignment Example Bank regulation incorporates detailed regulations and guiding principles overriding the operations, activities and acquisitions of the banking organisations.1 The regulation of the banking business activities has seen a number of policies under implementation. This section aims at analysing the different objectives of the regulation in regards to the deposits and investment related business. Further, the disadvantages in the regulation of the businesses due to the behaviours they encourage in the regulated entities of their customers analysed critically. 1.2 Banking Regulation Policy Highlights Financial regulations’ role in influencing the growth of banking business principles has become a key policy issue. The regulation of corporate governance in the financial sector has initially been regarded as a special area with standards, and rules to achieve the objectives of financial regulation involving the safety and soundness of the financial system and consumer, as well as inve stor protection.2 With banking regulation, the traditional principle-agent model used to analyse the relationship between shareholders, directors and the managerial team has given way to broader policy concerns aimed at maintaining financial stability, while ensuring that banks operate in a way that promotes broader financial growth as well as enhancing investor worth.3 The main reason why banking regulation is of much essence is due to systemic risks.4 These are risks whereby, economic problems at one or more banks spill over to a great number of other banks or financial systems as a whole. Regulation whether created at initial stages or after new models are fully operational, ought to obey two principles, which are proportionality and effectiveness. Poorly designed or timed regulation can obstruct responsible providers from entering and competing profitably on a level playing field. Thus, a well equaled approach incorporates recognizing the tradeoffs between protecting customers a nd fostering financial access.5 The laws pertaining to banking regulation appear complex and confusing, but in the real sense, with understanding of the objectives, it brings out a clear understanding of the intended application and projected achievements. 1.3 Main objectives of bank regulation Prudential: involves reducing the level of risk exposure to the bank creditors considerably. Therefore, the regulation aims at protecting the depositors. The concept of prudence is integral to bank regulation and supervision as it connotes the notion that, regulation requires banking activities be undertaken with reasonable care.6 Systemic risk reduction: This aims at reducing the peril of distraction resulting from unpleasant trading circumstances for banks, that in turn cause numerous or prime bank failures. This can also be referred to as ensuring monetary stability. Banks play a pivotal role in controlling the volume of money circulating in the economy of any given state. This in turn,

SPSS Assignment only Lab Report Example | Topics and Well Written Essays - 500 words

SPSS Assignment only - Lab Report Example None of the relationships is significant because they have a p value that is greater than 0.01. There is a weak positive correlation between math achievement in 8th grade and socio-Economic Status. This is because the data points are highly scattered and the trend of the data points seems not to be linear. Based on the scatter plot for math achievement in 8th grade and math achievement in 12th grade, what direction is the relationship? How strong is the relationship? Be sure to explain you answer. (2 points) There is a strong positive relationship between math achievement in 8th grade and math achievement in 12th grade. The trend of the scatter plot clearly shows it’s linear whereby the variables are directly proportional How does whether the State has a waiting period for handgun purchase influence the handgun homicide rate for that State? Remember to describe this relationship in terms of existence, strength, and direction. How does having a waiting period, unemployment rate, and number of executions influence the handgun homicide rate of a State? Remember to describe these relationships in terms of existence, strength, and direction. Number of execution has a negative influence while the unemployment has a positive influence on the handgun homicide rate of a state. Both have a weak relationship with the handgun homicide rate of a

Discuss the impact on Psychology of Descartes' introduction of Essay

Discuss the impact on Psychology of Descartes' introduction of mind-body dualism - Essay Example He has been faced with grave critiques since he tried to describe the two substances separate as well as unified (Grant, pp. 486, 2000). Descartes, quite technically, defends his idea by saying that when a person performs certain action or behaves in a specific kind of way in the absence of his conscious mind, his body is a manifestation of a mechanical working. However, when human psychology or consciousness is in full swing and functions properly, that is the time the person’s rational soul unites with his other entity, which is called the mechanical human body (Grant, pp. 487, 2000). Thus, the separation of the two substances is to the extent when mental attention is not up to the mark; nevertheless, with the union of body and mind, the human psychology plays a vital role with its optimum concentration and inclination. To view the whole notion in psychological perspective, what Descartes points out is that the functions of thinking, reasoning, questioning, analyzing, and ra tionalizing are wholly and exclusively performed by the soul. Yet, this soul does not take any physical space. However, for this soul to think and rationalize, the manifestation occurs in the existence of the body that does not think but takes a physical space. Thus, the identity of a person is made so concerning its distinct soul that rationalizes and not with its distinct body which is visible. In this case, when the soul has the power to think and manipulate, it even has the power to exist without a physical substance vis-a-vis the body and this is how Descartes makes the distinction. To understand it more clearly, Descartes claimed that the two substances can live without each other but a living human being can be made with the union of the two, exclusively and exhaustively. Hence, the impact on human psychology is based on the soul and not the body, which is void of all moral values and behavioral distinctions. Moreover, the impact on the psychology that Descartes’ mind and body idea makes can also be understood with an example given by Descartes himself. Descartes uses the example of phantom limb pain and explains that when a person for whatever reasons gets any of his arms or legs amputated, he might still feel pain in the missing portion of his body even after sometime. Therefore, the body is not just a visible autonomous being but is greatly linked and intermingled with the mind or the soul. Moreover, this interaction is such that in the psychology of the person, that amputated part of the body still exists even if it is apparently not there and that is the cause of the pain (Grant, pp. 488, 2000). Hence, body and mind/soul make a unit, the two might be two distinct objects but there being together has a great impact on psychology as earlier discussed. Descartes’ concepts are more vividly explained in the aspect of pain that a human feels. He says that it is not merely the transmission of neurons to the brain to feel a certain kind of pa in in the body, it is more of a though process that occurs in the mind/soul to feel and encounter a pain. Thus, the feeling of pain as encountered by a human’s mind/soul has a thorough impact on the psychology of the person to feel or not to feel the pain and to what extent he does that (Grant, pp. 496-499, 2000). Thus, all kind of pain or sensation is psychological and not bodily, as a person’s mind has to perceive the pain first for the overall human to perceive it. It was for the first time that the animal life was referred as that of machines. Descartes was of the

Strategies for analyzing and entering foreign markets Essay

Strategies for analyzing and entering foreign markets - Essay Example onal franchising is the strategy that gives the opportunity to an independent entrepreneur to operate a business under the name of another established brand name. International franchising helps businesses to expand into foreign markets using a franchise agreement. When franchises are expanded internationally, it opens new opportunities to new markets that the business could not have reached. International Franchising also allows businesses to take advantage of favorable government regulations in various countries. This helps to save money through the paid taxes. There are cultural differences that exist in various countries that might go a long way in killing the business in these countries. There is also financial risks involved when trying to expand the business into other countries. In analyzing foreign markets, firms first critically need to choose well the foreign market in which it would want to venture in. This would involve the analysis of the potential success of the business products in that market (Adam, 2001). The firm then requires gathering enough information to use in the analysis process. The information may include the knowledge about domestic government agencies, private agencies in that country as well as other private sources. In the analysis, it is also important for the firm to assess the possible risks in the foreign market. Firms choose their modes of entry into a foreign market through identification of the market, collection of information about the market, risk assessment, securing capital and space to carry out the

Planning For Wealth, Retirement and the Great Beyond Case Study

Planning For Wealth, Retirement and the Great Beyond - Case Study Example as specified in the case study of the family is inclusive of the registered retirement savings plan of 650,000 dollars as well as the 150,000 dollars that are unused in the registered retirement savings plan. The market value of the home is estimated to be 900,000 dollars .the value is considered to inflate in the future (Roseman 2002). The investment advisor is expected to help in working out a realistic plan that will enable achievement of the goals pertaining to the long term investments. The realization now is that it will be hard to rely on the Old Age Security or the Canada Pension Plan or the employers Pension Plan to meet the expenses that emerge after the retirement. With that in mind, the time to build an investment portfolio that will help manage and support the life after retirement would be now. Having a trust company is a benefit especially when the company is the executor or the trustee (Currie, Chambers, and Brown 2001). When determining the personal asset, a variety of assets may be considered. For instance in the case presented, the family owns a home that is valued at 900,000dollars that is expected to inflate, they also own investments ranging from the real to non real that are worth a lot of money. The spouse also has an investment that will pay later. The expense that incurred includes the 90,000 dollars annual expenses and the mortgage that will be paid for the next eight years. The investment totals to 2.205 million dollars (Currie, Chambers, and Brown 2001). Having acquired the investment portfolio required, the projections for future income can hence be formulated. For instance, the sources of income after the retirement include the pension plan from the employer. Out of the salary paid, the contribution to the pension plan will be 6 percent... The case presented represents the family of a mature family. The priorities and needs of such a family have changed. This is evidenced by maturity of the children where two of them are in their twenties and have already been employed and the last one is in adolescent, due to Finish University in three years. The issue of guardian ship is not there. This stage is also marked by peak earnings years and accumulation of many considerable assets. This part requires assessing of the financial status, the personal and life goals and needs and also assessing the priorities of life now. This report makes a conclusion that life on earth is not guaranteed. Therefore, once one has died, there is the need for the estate to be managed and the property taken care of. This is the sole purpose of the will. The checklist needed in ascertaining a will includes preparation and signing of the power of attorney for the financial affairs and running of the real estate. According to Gray& budd one needs to ascertain whether the will and the power of attorney are up to date. One needs to take steps to ensure protection of the assets bought in the relationship. The will also entails naming the beneficiaries and the alternate beneficiaries of the registered retirement savings pan, the life insurance policies, the pension plans and RRIFs. These should always be up to date. The will also entails the backup executor and the back up power of attorney. All the dependants should be well provided for.

San miguel background Essay Example for Free

San miguel background Essay INTRODUTION Eduardo Cojuanco, a CEO of San Miguel Corporation is having a hard time in making his decision about the risk he will take for his product know as the San Miguel Beer. He is currently re-assessing his marketing strategies to known if he can expand his plans and make it a success. His current flagship product is well known as the ‘San Miguel Beer’, is taking its slow growth rate because of its large market share. Because of this he then decided to engage in business not in line with his profession. These businesses are energy, mining and infrastructure. There’s more but these are what he chose to look real close. But we all known that San Miguel Beer is a long time-time product that was already familiar and be loved by the Filipinos. So, what would be the best decision for Mr. Conjuangco’s Company? History of the company La Fabrica de Cerveza de San Miguel, the Philippines’ first brewery – establish in 1890 with 70 employees – produced and bottled what would eventually become the country’s best selling beer. Within a span of generation, San Miguel in its familiar amber Steinie bottle would become a Filipino icon and a quintessential part of Filipino life. By 1914 San Miguel Beer was being exported to shanghai, Hong Kong and Guam. Hong Kong would later become a site of san Miguel’s first offshore operation in 1948 While brewing beer is San Miguel’s heritage and the focus of much of its expertise, the company subsequently branched out into soft beverages, food and packaging. Diversification characterized the 1920’s, with the company expanding its product line to include soft drinks and ice cream. In 1938, San Miguel began producing its own bottles. By the 1950’s, the company expanded into poultry and livestock feeds processing. From the original Cerveza that first rolled of the bottling line, San Miguel Corporation has gone to produce a wide range of popular beverage, food and packaging products which have catered to generations of consumers’ diverse and changing tastes. San Miguel Beer, the company’s flagship product is one of the world’s largest selling beers. San Miguel is the Philippine largest food, beverage and packaging company and packaging company and the one of the country’s biggest private employers. The company’s manufacturing operations extends to Hong Kong, China, Indonesia, Vietnam and Australia and its products are exported to over 40 countries around the world. San Miguel partnerships with major international companies have given the company access to the latest technologies and expertise. Partners include the Coca-Cola Company, Hormal Foods Corporation, Hormel Foods Corporation, Kirin Brewery, Yamamura Glass and Fuso Machine and Mold Manufacturing of Japan. Industry Definition COMPANY PROFILE San Miguel Corporation is the largest food, beverage and packaging company in the Philippines, employing more than 26,000 employees in over 100 facilities in the Philippines, China, Hong Kong, Southeast Asia and Australia. Our enduring brand, quality products, unparalleled distribution, responsiveness and innovation have enables us to become among the best company in Asia. Our company has been in the business of building brands for years. Our name is among the most recognized and trusted in the Philippines, appearing on more than 300 products. MISSION San Miguel Foundation, Inc. is committed to the empowerment of San Miguel host communities and various take holders by harnessing corporate social responsibility among the various San Miguel business in pursuing mutually beneficial programs that lead to self-reliance and sustainability. VISSION Vision SMC’s fundamental and historical philosophy — Profit with Honor. The following are SMC’s objectives: To provide an environment which is conducive to the development of the individual and which encourages employees to realize their full capabilities. To generate a return on funds employed sufficient to ensure an adequate rate of growth for the Corporation, and to provide satisfactory returns to stockholders. To seek and develop export markets for new products as well as for those already being produced by the Corporation. To diversify into fields which will ensure optimum utilization of management resources and a substantial contribution to corporate profits? To manufacture, distribute and sell throughout the Philippines food products, beverages, packaging products and animal feeds, being ready at all times to add, modify or discontinue products in accordance with changes in the market. To be constantly aware of the aspirations of the people and of the nation, and to ensure that San Miguel continues to make a major contribution towards the achievement of these aspirations. VALUES San Miguel is Strongly oriented towards achieving results but firmly believes that these results be achieved in a manner that uphold the highest standards of integrity and ethical practice. These are exemplified in our core value, which each and every San Miguel employee should strive to uphold: Passion for Success We will constantly strive for excellence. We will be the best we can be and create value in everything we do. We will be proactive and entrepreneurial, propelled by a sense of urgency, competitiveness and total dedication to results. Teamwork With trust and respect for each other and with unity in purpose, we will work toward our shared aspirations, transcending boundaries along functional and organizational lines. Respect for Our People   We recognize our employees as individuals and are committed to nurturing their individual capabilities. We will uplift the dignity of labor by encouraging our people to be the best in their fields. We believe their growth and the growth of the organization go hand in hand. We are committed to creating a work environment that encourages open communication, camaraderie and professional growth. Customer Focus We will be our customers’ preferred choice. They will choose our products and services above others because we provide them with products and services that exceed their expectations. Innovativeness We will encourage creativity and ingenuity in our processes and systems, products and services. We will be forever looking for ways to outdo ourselves, always striving to be the first to anticipate consumer needs and deliver something better. Integrity In the conduct of our business, we will be guided by what is ethical, fair and right. We believe in profit with honor and are committed to good governance and the highest moral standards. Social Responsibility We believe social responsibility and corporate citizenship are integral parts of our business. We are committed to improving lives of people in the communities in which we live and work. AWARDS 2012 San Miguel Community Clinics Anvil Award of Merit, 47th Anvil Awards SMPF Handog Lusog Para sa Nutrisyon ng Nasyon Finalist, IABC Philippine Quill Awards 2012 San Miguel Community Clinics Award of Excellence, IABC Philippine Quill Awards 2011 Anvil Award of Merit, 46th Anvil Awards Tulong-tulong para sa Tullahan Project II Anvil Award of Merit, 46th Anvil Awards Tulong-tulong sa Tullahan 2002 Anvil Award of Excellence (Public Relations Society of the Philippines) Coca-Cola’s Mission P.E.T. 2002 Anvil Award of Excellence (Public Relations Society of the Philippines) Coca-Cola’s Mission P.E.T. 2002 Gold Quill Award (International Assn. of Business Communicators) Distileria Bago, Inc. 2002 Anvil Award of Merit (Public Relations Society of the Philippines) Distileria Bago, Inc. 2002-2003 Certifi cate of Recognition as Healthy Workplace Regional Winner (Provincial Category) San Fernando Brewery 2001 Healthy Workplace (Department of Health-National and Regional Level) Davao Brewery’s EMS and Adopt-a-River Project 2000 Mother Nature Award (Pollution Control Assn. of the Philippines, Inc.) San Fernando Brewery 1999 Employer of the Year Award (Social Security System) Polo Brewery/Bacolod Brewery/Davao Brewery/CTS-EMG 1997-2000 Ten Outstanding Pollution Control Officers (Pollution Control Assn. of the Philippines, Inc.) WARRANTY OBJECTIVES OF THE STUDY Established in 1890 as a single-product brewery, San Miguel Corporation (San Miguel) is the Philippines’ largest beverage, food and packaging company. Today, the company has over 100 facilities in the Philippines, Southeast Asia, and China. One of the country’s premier business conglomerates, San Miguel’s extensive product portfolio includes over 400 products ranging from beer, hard liquor, juices, basic and processed meats, poultry, dairy products, condiments, coffee, flour, animal feeds and various packaging products. For generations, the Company has generated strong consumer loyalty through brands that are among the most formidable in the Philippine food and beverage industry – San Miguel Pale Pilsen, Ginebra, Monterey, Magnolia, and Purefoods. Flagship product, San Miguel Beer, holds an over 95% share of the Philippine beer market. In addition to its leadership in the Philippine food and beverage industry, San Miguel has established a significant presence overseas. The Company’s operations extend beyond its home base of the Philippines to China (including Hong Kong), Vietnam, Indonesia, Malaysia, Thailand and Australia. Through strategic partnerships it has forged with major international companies, San Miguel has gained access to managerial expertise, international practices and advanced technology, thereby enhancing its performance and establishing itself as a world-class company.

ATR-FTIR Analysis for Oil Type Identification

ATR-FTIR Analysis for Oil Type Identification Abstract Attenuated Total Reflectance-Fourier Transform Infrared Spectroscopy (ATR-FTIR) analysis could greatly help in the identification of oil. By mere inspection of the IR spectra, saturated oils can be easily distinguished from coconut oils. Identification of oils can be enhance by the use of chemometrical techniques such Principal Component Analysis (PCA). Using this technique, subtle differences in the spectra can be used to classify vegetable oils. This study have shown that ATR-FTIR together with PCA can be used to differentiate unsaturated oils from saturated oil and discriminate virgin coconut oil (VCO) from ordinary refined, bleached and deodorized coconut oil (CCO). Introduction Virgin coconut oil (VCO) has a potential to be one of the Philippines’ high-value export products. In the first half of 2005 alone about 350 metric tons of VCO were shipped to foreign markets. Virgin coconut oil is a minimally process or a cold press oil obtained by mechanical means (Philippine National Standard for Virgin Coconut Oil 2005) such as crushing pressing and centrifugation. These procedures result in the retention of the natural flavor and minor components of the oil, which can otherwise be destroyed by chemical process such as refining, deodorizing and bleaching. Cold pressed oils commands a higher price compared to processed oils because these â€Å"natural† procedures deliver lower yield and uses higher quality raw materials to prevent spoilage (Ulberth and Buchgraber 2000). To ensure the quality of VCO in the country, The Philippine National Standard provided a criterion (PNS/BAFPS 22:2004). This standard includes determination of fatty acid composition using gas-liquid chromatography (GLC), iodine value and sensory parameters such as taste, odor and color (Philippine National Standard for Virgin Coconut Oil 2005). However, it is a known fact that the fatty acid profile of oils is species dependent; therefore this classification method cannot distinguish VCO from ordinary refined, bleached and deodorized coconut oil (CCO). Iodine value in the other hand gives information on the degree of unsaturation of the oil and may be use only to distinguish coconut oils from unsaturated oil like corn oil (CO) and soybean oil (SO) but cannot discriminate VCO from CCO. Sensory parameters can easily be manipulated by bleaching and deodorizing the oil or by addition of flavoring agents. In recent years, various spectroscopic methods have been employed to authenticate vegetable oils such as virgin olive oil (VOO) (Aparicio and Luna 2002; Bucci et al. 2002; Dupuy et al. 1996; Lankmayr et al. 2004; Ozen et al. 2003; Tapp et al. 2003; Tay et al. 2002; Vigli et al. 2003; Yang et al. 2005). These techniques have the advantages of minimal sample preparation and rapid analysis time (Ulberth and Buchgraber 2000). In the study conducted by Yang et al (2005), Fourier Transform Infrared (FTIR) spectroscopy was found to be the most efficient in classification of oils as compared to Fourier Transform Raman and Fourier Transform Near Infrared spectroscopy. An attenuated total reflectance (ATR) accessory is usually used with the FTIR spectrometer for oil and fat study due to its ability to handle liquid samples easily. The resulting infrared spectrum contains all vibrational information about the entire components of the sample. In order to take full advantage of the spectral infor mation, including subtle features that may not be readily discerned, pattern recognition techniques such as Principal Component Analysis (PCA) are commonly used. These techniques can reveal relationships that were not previously suspected, which can lead to interpretations that are not readily apparent by mere visual inspection of IR spectra alone (Beebe et al. 1998; Davies and Fearn 2005). PCA is a mathematical manipulation used to reorganize the high-dimensionality of spectroscopic data into a smaller number of â€Å"Principal Components† or PCs that can account for the majority of the information in the data set. Methodology All samples of edible oils were obtained from reputable supermarkets in Iloilo City. Samples include four brands of VCO [a total of six samples, one brand have a total of three samples, two regular VCO with different manufacturing dates (labeled as VCO2 and VCO3) and one corn flavored VCO (labeled as VCO4) ] , three different brands of coconut oil ( CCO1, CCO2, and CCO3) and one brand each of corn oil (CO), soybean oil (SO), canola oil (CLO), virgin olive oil (VOO) and palm oil (PO). The oils were stored in their original containers until used. Minimal opening of bottles were observed to prevent oxidation of oils. Infrared (IR) spectra of samples were obtained at 4000 – 400 cm-1, 1 cm-1 resolution and 64 scans; using the Avatar 330 Thermo Nicolet FTIR equipped with DTGS (deuterated tri-glycine sulphate) detector and EZ OMNIC software at the University of the Philippines in the Visayas Chemistry Laboratory, Miag-ao, Iloilo. Samples were placed directly on a multi-bounce zinc selenide horizontal ATR crystal. The ATR crystal was totally cleaned using acetone after each run. IR spectral data of different oils from EZ OMNIC software were converted to Microsoft Excel files. Data were arranged in tabular form, different oils in columns and transmittance at different wavelengths in rows. The excel file was then transferred to Unscrambler version 9.6 for Principal Components Analysis. The evaluation version of this software can be downloaded at www.camo.com. Results and Discussion The FTIR spectra of most fats and oils appeared almost visually similar; the slight differences in the spectral features reflect the variations in the fatty acid composition (Figure1 to 6). Every peak in the spectra represents structural and functional group, either of the oil or other minor components. At the high frequency end of the spectrum (4000-3500 cm-1) only a few absorption bands can be observed. The most notable are the absorption bands due to O-H stretching vibration at about 3700 and 3400 cm-1, which may be due to moisture, alcohol or fatty acids. Both alcohols and free fatty acids are degradation product of triglycerides which accumulate during prolong storage and in the presence of moisture. For a clean and dry oil, only the first overtone of the C=O vibration could be seen. The strong band dominating the 3000-2840 cm-1 region is due to C-H stretches of methylene and terminal methyl groups. The =C-H stretch absorbed at slightly higher region, 3095 -3010 cm-1. A strong a bsorption peak in the range of 1750-1735 cm-1 is due to the C=O stretch of an aliphatic ester. If degradation has occurred a shoulder located on the lower frequency side of this will appear due to the C=O stretch of the resulting long chain carboxylic acid (1730-1700 cm-1). A sharp peak at about 1660-1600 cm-1 results from a C=C stretching vibration. The presence of this peak together with a C-H peak at wavenumber greater than 3000 cm-1 is a good indication of unsaturation. The part of the spectrum lower than 1500 cm-1 is called the fingerprint region. The absorption in this area of the spectrum is highly characteristic of the molecule as a whole, and can be used to identify the substance (Pavia et al. 2000; van de Voort et al. 2001). As shown in Figure1-6 its is easy to distinguish unsaturated oils from saturated oils by observing the regions that indicate unsaturation, 3095-3010 cm-1 and 1660-1600 cm-1. For olive, corn, palm, canola and soybean oil sharp peaks are seen in both of these areas but no such peaks can be seen in the IR spectra of either CCO or VCO. Thus, visual examination of the IR spectrum can provide a way to distinguish unsaturated oils from coconut oils. However, visual inspection of the spectra alone is insufficient to differentiate VCO from CCO because their IR spectra are identical to the naked eye. To compare such large data sets like IR spectra, which consist of more than a thousand wavelengths, Principal Component Analysis can be used. This chemometrical technique mathematically models the data into a more manageable data sets (consisting of a few principal components) that can then be interpreted more easily (Brereton 2003). Principal Component Analyses were performed on the spectra of all oils using Unscrambler version 9.6 software. The software generated several important plots. The percent variance plot gives the total variation in the data set that is described by a particular PC. This plot can be used to determine the number of PC that can effectively describe the whole data set. The 2D scatter plot (PCy vs. PCx) represents how the samples are related to each other. The closeness of the samples in the plot is interpreted as chemical similarity(Beebe and others 1998). The percent variance plot (Figure 7) of the oil samples spectra generated by the software shows that the first two principal components represent almost 100% of the variance in the data set. As a general rule the PCs that account for less than 5% of the data variation can be rejected (Beebe and others 1998), therefore the first two PCs are sufficient in making our investigation. The scatter plot of first principal component (PC1) versus the second principal component (PC2) shows that it possible to separate the oils into two separate groups, the unsaturated and coconut oil group (Figure 8). Unsaturated oil group consists of corn oil, soya oil, canola oil, palm oil while that of the coconut oil includes CVO and CCO. Performing the same analysis on CCO and VCO spectra reveals that only the PC1 and the PC2 are highly significant (Figure 9). However, the scatter plot of the two PCs did not successfully separate VCO from CCO (Figure 10). Close inspection of spectra reveal that there are absorption bands at the high frequency region that might indicate the presence of moisture, fatty alcohol or fatty acids in some samples. This observation is confirmed by the Influence Plot (Figure 11) that shows that there is a high residual variance of the 3740 cm-1, a wavenumber corresponding to H-O absorption. This indicates that the moisture content, fatty alcohol or the free fatty acid content of the oil may have greatly controlled the classification process. The other residual in the influence plot may be due to other components of VCO or CCO that are vital in the classification process. To correct for the effect of the O-H absorption band, it was decided to eliminate wavelength above 1800 cm-1 from the spectra of the oil and use only the area encompassing the carbonyl carbon (C=O) and fingerprint region, 1800-400 cm-1. Principal component analysis of this part of the spectra shows that the first two PC can be used to correctly classify VCO and CCO into separate groups (Figure 12 and 13). In conclusion, FTIR identification of oils can be enhance by the use of chemometrical techniques such Principal Component Analysis. Using this technique, subtle differences in the spectra can be used to classify oil. FTIR together with PCA can differentiate unsaturated oils from saturated oil and can discriminate virgin coconut oil from ordinary refined, bleached and deodorized coconut oil (CCO). Acknowledgement The authors are very grateful to the UP System for upgrading the UPV Chemistry Laboratory and for the purchase of the FTIR used this study possible. Literature Cited Aparicio R, Luna G. 2002. Charaterization of Monovarietal Virgin Olive Oils. European Journal of Lipid Science Technology 104:614-627. Beebe KR, Pell RR, Mary BS. 1998. Chemometrics: A Practical Guide. New York: John Wiley Sons, Inc. 348 p. Brereton RG. 2003. Chemometrics Data Analysis for the Laboratory and Chemical Plant. West Sussex: John Wiley Sons Ltd. 489 p. Bucci R, Magri AD, Magri AL, Marini D, Marini F. 2002. Chemical Authentication of extra Virgin Olive Oil Varieties by Supervise Chemometric Procedure. Journal Agricultural Food Chemistry 50:413-418. Davies AMC, Fearn T. 2005 Back to Basics: The Principles of Principal Component Analysis. Spectroscopy Asia:35-38. Dupuy N, Duponchel L, Huvenne J, Sombret B, Legrand P. 1996. Classification of Edible Fats and Oils by Fourier Transform Infrared Spectra. Food Chemistry 57(2):245-251. Lankmayr E, Mocak J, Serdt K, Balla B, Wenzl T, Bandoniene D, Gfrerer M, Wagner S. 2004. Chemometrical Classification of Pumpkin Seed OIl using Uv-Vis, NIR and FTIR Spectra. Journal of Biochemical and Biophysical Methods 61(1-2):95-106. Ozen BF, Weiss I, Mauer L. 2003. Dietary Supplement Oil Classification and Detection of Adulteration Using Fourier Transform Infrared Spectroscopy. Journal Agricultural Food Chemistry 51:5871-5876. Pavia DL, Lampman GM, Kriz GS. 2000. Introduction to Spectroscopy. New York: Brooks Cole. Philippine National Standard for Virgin Coconut Oil. 2005. PNS/BAFPS 22:2004. Tapp HS, Defernez M, Kemsley K. 2003. FTIR spectroscopy and Multivariate Analysis can Distinguish the Geographic Origin of Extra Virgin Olive Oil. Journal Agricultural Food Chemistry 51:6110-6115. Tay A, Singh RK, Krishnan SS, Gore JP. 2002. Authentication of Olive Oil Adulterated with Vegetable Oils Using Fourier Transform Infrared Spectroscopy. LWT-Food Science and Technology 35:99-103. Ulberth F, Buchgraber M. 2000. Authenticity of Fats and OIls. European Journal of Lipid Science Technology 102:687-694. van de Voort F, Sedman J, Russin T. 2001. Lipid Analysis by Vibrational Spectroscopy. European Journal of Lipid Science Technology 103:815-840. Vigli G, Philippidis A, Spyros A, Dais P. 2003. Classification of Edible Oils by Employing 31P and 1H NMR Spectroscopy in Combination with Multivariate Statistical Analysis. A Proposal for the Detection of Seed Oil Adulteration in Virgin Olive Oils. Journal Agricultural Food Chemistry 51:5715-5722. Yang H, Irudayaraj J, Paradkar M. 2005. Discriminant Analysis of Edible Oils and Fats by FTIR, FT-NIR and FT-Raman Spectroscopy. Food Chemistry 93:25-32.