Relationship Between Balance Of Payments And Exchange Rate Finance Essay

Relationship Between Balance Of Payments And Exchange Rate Finance Essay The accedence of developing countries such as China, Thailand, Vietnamà ¢Ã¢â€š ¬Ã‚ ¦to the international trade give them the prosperous and economic growth; however the countries have faced many issues in managing their macro-economy to sustain the economic growth and development. Especially, in Vietnam, the government usually has serious difficulties in managing and operating the economic with the deficit in the Balance of Payments, the depreciation domestic currency and retraining the local inflation. The balance of payment is one of the most considerations of the governments when they formulate the national trade, fiscal and monetary policies, so it has the significant important role in governments policy decision-making. It also has an indispensable part to organizations (i.e. banks, companies, nongovernment organizations) and individuals that are directly or indirectly involved in international trade and finance (Dominick Salvatore, 2011). And the Balance of Payments is a significant indicator of the pressure on the exchange rate of a country (David K. Eitman, Arthur I. Stonehill Michael H. Moeffett, 2010). In the context of Vietnam, the surplus in the Balance of Payments encourages the governments allow the value of the domestic currency to increase. On the other hand, the significant deficit in Balance of Payments force the government to devalue the price of VND (David K. Eitman, Arthur I. Stonehill Michael H. Moeffett, 2010). Next, the theories of exchange rate determination that related to the inflation and the balance of payments are Purchasing Power Parity Approaches and Balance of Payments Approaches respectively. According to Purchasing Power Parity approaches, the determination of the equilibrium of exchange rate in long term is the ratio of domestic prices relative to foreign prices (David K. Eitman, Arthur I. Stonehill Michael H. Moeffett, 2010). And along with Balance of payments approaches, the exchange rate reflects the transactions in the current and financial accounts of the balance of payments (David K. Eitman, Arthur I. Stonehill Michael H. Moeffett, 2010). The exchange rate movements also produce the risk for firms, because they result in foreign exchange exposure, i.e. transaction risk, translation exposure and operating or economic exposure. The transaction risk refers to the exposure of the firms contractual transactions in foreign currencies (Jeff Madura, 2008). The translation expos ure refers to the exposure when the firms translate or consolidate their subsidiaries financial statements to the currency of the parent company (Jeff Madura, 2008). The economic exposure refers to the exposure of a firms present values, which are affected from the changes in operating cash flows, which are effected movements of exchange rate (David K. Eitman, Arthur I. Stonehill Michael H. Moeffett, 2010). Thus, the transaction exposure is the subfield of the economic exposure (Jeff Madura, 2008). In the context of Vietnam, USD is considered as a tool to invest; thus when the value of USD increase with respect to the value of VND, people and investor will exchange from VND to USD. There are two reasons behind that fact; first, they want to invest in USD; second, they afraid of the inflation and the devaluation in VND. Therefore, the movements of exchange rate will impact the inflation in Vietnam. And the inflation impacts everyone directly or indirectly. It impacts on savers and investors, people with fixed incomes (i.e. pension payment); for example, if the inflation rate goes up higher than the return on savings or investment, the received money will be worth less than it was when they deposited. However, the increase in the inflation may impact positively the people who owe money; they may generally get benefit from inflation if the value of the money they repay is less than that of the amount of their loans. On the other hand, the inflation may affects negatively the people who lend money, if the value of the money they lend to other people is worth than the value of money the borrowers repay them. To be noted, the inflation will influences business; the inflation will increase the costs, so the companies have to try to increase their incomes higher than the increase in inflation in order to c ompensate the increase in the costs (Gerson Antell and Walter Harris, 2005). The inflation also impacts the international trade of a country. In the circumstances of other things equal, if the inflation rate increases relative to that of the trade-partner countries, its current account will decrease. Because the people in that country will purchase more imports from foreign countries due to the higher local inflation, while the exports of that country will decline (Jeff Madura, 2008). That will impact the demand for and supply of the currencies of that currencies (Jeff Madura, 2008) Next, I would like to mention briefly about the three things the research is going to study. First, tn principle, the balance of payments is a summary statement which embraces all the transactions of the residents of a nation with the residents of all other nations, and they are recorded during a period of time. (Dominick Salvatore, 2011:434).Thus, it summarizes all transaction into some categories and only the net balance of each one is included and has time dimension. The transactions in the balance of payments are international, and are classified as credits or debits. The credit transactions refer to the receipts of payments from foreigners and they are noted with a positive sign. On the other hand, the debit transactions refer to the payments to foreigners and they are noted with a negative sign. (Dominick Salvatore, 2011). Next, an exchange rate is the price of one currency expressed in terms of another (Glen Arnold, 2008:965). There are two ways of quotation for exchange rate (i.e. direct quotation and indirect quotation). Within the direct quotation, the exchange rate between a domestic currency and foreign one is equal to the number of the domestic currency to purchase one unit of a foreign currency (Dominick Salvatore, 2011). The indirect quotation is vice versa. Next, the movements of the exchange rate refer to the terms depreciation and appreciation. The depreciation is increases in the price of the foreign currency with respect to the domestic currency; and the appreciation refers to decreases in the price of the foreign currency with respect to the domestic currency page (Dominick Salvatore, 2011). Thus, the depreciation in this study refers to the increases of the price of USD with respect to VND, and the appreciation refers to decreases in the price of USD with respect to VND. In Vietnam, USD is the most popular foreign currency and it has an significant important role in the economy in Vietnam. Moreover, the people in Vietnam invest so much in USD in order to earn interest or avoid the risk of inflation of VND. Therefore, the exchange rate that the study will collect and analyze is the exchange rate between USD and VND USDVND. The rate is quoted directly, that means the rate reflect how much domestic currency (i.e. VND) for one unit of foreign currency (i.e. USD) Next, I would like to mention about the inflation, the method to measure the inflation in this study and the inflation in Vietnam. According to Romer Inflation is an increase in the average price of goods and services in terms of money (2006: 497). The inflation is measured by many methods such as: consumer price index, producer price index, GDP inflation indices, etc. The CPI and PPI are fixed-weight measures; that means the same basket of goods and services is analyzed each month. Meanwhile, the GDP inflation indices are a variable-weight measure; within this method, the basket of goods and services being assessed depended on what was produced during a particular quarter (Evelina M. Tainer, 2006). Among those methods, CPI is the most popular method to measure inflation in the world because it has many advantages with respect to other methods. For example, the GDP inflation indices cover more items than CPI, but the GDP inflation indices are released only quarterly; meanwhile the mo nthly release of the CPI help people observe the inflation closely and constantly. Moreover, the PPI just embraces the price changes in wholesales business; it does not involve services which is the fastest-growing section in the world (Bernard Baumohl, 2005). Therefore, CPI is more relevant to the cost of living and the cost of doing business. Consumer price index refers how much consumers pay for goods and services, that influences individual and corporate investment, the cost of business and the quality of life (Bernard Baumohl, 2005). And CPI is an index number which expresses percentage changes from base year. Structure of literature review The literature review of this study will follow the format: The Balance of Payment The definition The constituents of the Balance of Payments. When the Balance of Payments is surplus and deficit. Their impact on inflation and exchange rate An overview about the Balance of Payments in Vietnam and its challenges The Inflation The definition How to measure the inflation The method applied in the context of Vietnam The influence of the inflation on the exchange rate and the Balance of Payments The overview about the inflation in Vietnam and its problems The exchange rate The definition Why the author choose the exchange rate between VND and USD to study. The impact of the movements of exchange rate on the Balance of Payments and the deficit The overview about the Vietnamese currency regime and the exchange rate between VND and USD in Vietnam The relationship or reciprocal among The exchange rate, the Balance of Payments and the Inflation in the context of developing countries that has the conditions and situations like Vietnam The issue and challenges that Vietnam is facing in the relationships among the exchange rate (USD/VND), the Balance of Payments and the Inflation Significance of the study This study will produce the reader an overview and help them understand more about the relationship or reciprocal among the Balance of Payments, the movements of exchange rate and the Inflation in Vietnam. So, the study will produce significant benefits: The government in Vietnam will have one more useful research paper in the governance of the macro-economy, especially about the control and manage the Inflation, the state of Balance of Payments when the exchange rate moves. The benefit of the study is helping the firms in Vietnam can understand and forecast the inflation and the exchange rate (USD/VND) in Vietnam better. That will help them hedge their incomes and payments in order to reduce the risks. As we know, Inflation causes instabilities and distorts economic decisions; however only unexpected inflation rates causes problems, not anticipated inflation rates. (Evelina M. Tainer, 2006) 3. Research questions and objectives 3.1 Research questions The study will try to answer the following questions in the context of Vietnam: 1. How the exchange rate moves when the state of Balance of Payment is deficit or surplus? 2. How the inflation responds to the movements of exchange rate between USD-VND? The research will not only analyze the movements of the three factors in the past form 1995 to 2010 but also try to produce the main reasons and causes behind the movements. Those will help the readers can have a deep and big view about the relationships between the Balance of Payments the exchange rate (USD-VND); and between the exchange rate (USD-VND) The inflation. 3.2 Research objectives There are two main objectives: 1. Finding common movements of the exchange rate when the Balance of Payments deficit and surplus; and the common respond of the inflation to the movements of the exchange rate. 2. Clarifying the main reasons and causes in those facts. In order to achieve the objective one, the author will collect date from 1995 to 2010; then the data will be examined by employing SPSS or Microsoft Office Excel Next, the second objectives will require more comprehensive academic reading and secondary researches or from some specialists and officers in the government to clarify the deep reasons behind the facts. 4. Research methodology Research design 4.1 research methodology This part will involve in the methodology or procedure to find out the relationship between the three factors in the context of Vietnam. The study will the method involved in secondary data collection, and there may be interviews with some specialists; then the analysis will be used to find the conclusions. 4.2 Research design The author proposes the questions and hypothesis; then the author collected quantitative data and information from secondary resources to analyze and find the answers. The questions and hypothesis come first and guide the process of gathering data. According to what I mention above, I can declare that the epistemology of this research is positivism. The data of this research is analyzed to test the hypotheses. The author is independent from what are being researched. 4.3 Data collection The research method of collecting data in this study is collecting data and information from secondary data sources. The author will collect data for exchange rates between VND and USD, the state of Balance of Payments and the Inflation in Vietnam, the balance of payments in Vietnam and the inflation in Vietnam from 1995 to 2010. The research will collect the date from 1995, because that is the time U.S abolished completely the trade embargo to Vietnam. That influenced international trade in Vietnam and created the relation between the balance of Payments and the exchange rate between USD-VND as well as the impact of the exchange rate on the inflation in Vietnam 5. Time scale This study is divided into four stages and the duration of each stage in particular and that of the study in general are predicted as follows: Stages Working Duration 1 Literature review 4 weeks 2 Collecting Data 6 weeks 3 Data analysis and presentation 4 weeks 4 Conclusion and recommendation 3 weeks It is flexible to change the duration of study subject due to unexpected problems occurring during the research process 6. Resources The research process will be involved in the following resources: A laptop computer to do the study Internet access to collect data and information Online library access to approach academic papers related to the study. The assistance from governments staff to access the date of exchange rates, the inflation index and the state of Balance of payments. Particular, the researcher needs the instructors guidance of how to use software to analyze data such as Microsoft Office Excel or SPSS, or others.

The Impact of Immigration on The United States Essay -- American Econo

The United States is a country that was built on immigration. The first settlers, Native Americans, represent less than 2% of the total population; the remaining 98% of the population are immigrants or decedents of immigrants. Today, the US still has the highest immigration rate in the world with 757,434 naturalizations in the 2012 fiscal year only (US Naturalizations 2012, Department of Homeland security). People try to immigrate to the United States for many reasons. Some people immigrate because they have been granted a refugee status or asylum and other people immigrate to fulfill their dreams. Immigration has an effect on the American society and economy. The US cannot survive without immigrants. Every year, many people immigrate to the US for several reasons. There are those who come to look for a safe place to stay because their countries are in war. Some immigrants have left their home countries to escape war or fear of persecution. They are refugees and have a legal right to remain the United States. Others come to the US to seek protection; they are granted an asylum and are also lawful residents. Besides that, most immigrants leave their countries and come to the US to fulfill their dreams. More so, the majority of the immigrants are unauthorized immigrants who are all foreign born nonresidents. According to Population Estimates, Office of Immigration Statistics, Department of Homeland Security (2011): 4. The number of unauthorized immigrants in US was estimated to 11,510,000.Regarding only to this large number of the unauthorized immigrants we can think about an eventual impact of immigration on US. First of all immigration has a huge impact on demography and social change because it raises the US population. M... ...ates: January 2010." Population Estimates, Office of Immigration Statistics, Department of Homeland Security (2011): 4. Kica, Matos. "13 years is too long for people to wait." USA Today n.d.: Academic Search Complete. Web. 20 Nov. 2013. Laura Parker ‘’US just wouldn’t work without immigrant labor’’USATODAY’’7/22/2001 updated 11:21 PM ET http://usatoday30.usatoday.com/news/washington/july01/2001-07-23-immigrant.htm Melanie Oubre Population ‘’Growth Fueled by Immigration Puts U.S. on Fast-Track to Depletion of Natural Resources’’Number USA Friday, December 28, 2012, 11:40 AM EST https://www.numbersusa.com/content/nusablog/moubre/december-28-2012/population-growth-fueled-immigration-puts-us-fast-track-depletion-n Murphy,Dean E ``Imagining Life Without Illegal Immigrants’’ New York Times January 11,2004 http://www.wright.edu/~tdung/ Immigrants.htm

Commentary on Anthem for Doomed Youth by Wilfred Owens Essay

The sonnet â€Å"Anthem for Doomed Youth† by Wilfred Owen explores the horrific and tragic conditions of the deaths of World War I soldiers on the Western front. By contrasting the soldiers’ deaths with the customary Christian funeral ceremonies, Owen comments on the dark irony that the young men who gave their lives to serve â€Å"God and their country† were denied the respectful yet superficial rituals that the religious society value so much. The title of the poem well expresses the sentiments Owen conveys throughout the sonnet. The use of the term â€Å"anthem†, which is usually refers to a joyous and often religious song of praise, is in this case referring to the widely held view that fighting for one’s country is joyous and honorable. This anthem, however, is for â€Å"Doomed Youth†, and there is a dark irony that this widely held sense of pride and nationalism about war actually results in futility and death. Owen chooses to describe the young soldiers as â€Å"doomed† because they are destined for death as soon as they enter the army, because of the futility of the strategies used in this war. The soldiers are also referred to as â€Å"youth† to emphasize their innocence and create the image of healthy, fit young men dying for nothing, which arouses pity in the reader. The first stanza is an octave that describes the horrifically violent conditions of these young soldiers’ deaths by contrasting and juxtaposing auditory imagery of the battlefield as the soldiers die with descriptions of customary funeral ceremonies. The first line is a rhetorical question, which forces the reader to truly ponder all that the soldiers lack in terms of acknowledgment and ceremonies of death, and this encouragement to think is further enhanced by the hyphen in the beginning of the second line, which forces the reader to pause. Owen emphasizes the shocking nature of the soldiers’ world, the war, by saying that the soldiers â€Å"die as cattle†, which conveys the manner in which these young men are slaughtered inhumanely as if they are worthless and are treated as if they have no identity. Instead of â€Å"passing-bells†, which is society’s way of acknowledging a death, these soldiers receive the â€Å"only the monstrous anger of the guns†, which indicates that their death goes unnoticed as if they were just cattle. Furthermore, Owen comments on all the rituals and customs that the soldiers fail to receive. The personification of the guns as being â€Å"angry† contrasts to the solemn sorrow the soldiers should have received upon their death. The repetition of â€Å"only† in lines 2 and 3 emphasizes all that the soldiers lack, as we are then told that instead of funeral prayers, the soldiers instead hear the â€Å"stuttering rifles’ rapid rattle†; the alliteration echoes the gunfire and the onomatopoeia allows the reader to hear the harshness and irregular but constant sounds of the guns. By implying that these guns â€Å"patter out their hasty orisons†, Owen points out the irony that these men who have gone to war for God are being killed and must have â€Å"orisons† muttered for them by the deadly machines that are responsible for their death. The â€Å"orisons† are described as â€Å"hasty†, which indicates the rapid pace of the war and the fact that these soldiers have little time to live. Furthermore, instead of church choirs, the soldiers hear the â€Å"shrill, demented choirs of wailing shells†, which seems to suggest a demonic sound, perhaps implying that the soldiers receive no peace even after death. The personification of the shells as â€Å"wailing† is ironic because the weapons that killed the soldiers sound as if they are mourning for them. Further down the stanza, Owen subtly criticizes the Christian religion and its ceremonies as he describes the funeral customs as â€Å"mockeries†. This term suggests the irony in the fact that these soldiers, who have given their lives for God and their country, are not able to enjoy these ceremonies that acknowledge their death, even though they may be the ones that most deserve them. The last line of the first stanza foreshadows the coming volta as it shifts the focus from the conditions of death in war to the sadness that the deaths in the war brings to those who knew the soldiers. The sound of the gentle and beautiful â€Å"bugles calling† is a sharp contrast from the violent noises of the war but the mention of the â€Å"sad shires† seems to imply that this sad calling is coming from anonymous â€Å"shires† far away. The sad, and less violent tone of the last line of the octave is carried onto the second paragraph, in which the tone becomes contemplative and sorrowful. There is a volta as the focus shifts from the violence of the war to the sober yet sincere way in which these young men die at war, with no elaborate customs but with pure, untainted emotion. Owen begins this stanza with another rhetorical question: â€Å"What candles may be held to speed them all?† The term â€Å"speed them all† seems to refer to the passage to heaven, and thus we are made to wonder: without candles or ceremony, will the soldiers be able to find their way to heaven, or will they haunt the battle grounds forever? In the following lines Owen gives us the heartrending but optimistic answer that indicates that although the soldiers are neglected of the traditional funeral ceremonies, nature itself and those who love them give them a metaphorical ceremony that is much more sincere and pure. Therefore, although the candles are not in their hands, they are in â€Å"their eyes†. This metaphor gives the image of sparkling, glittering eyes, as if the soldier’s eyes were brimmed with tears as he died. This pure emotion of sorrow of â€Å"goodbyes† is suggested to be purer and more sincere than artificial and elaborate ceremonies through the use of positive words such as â€Å"shine†, â€Å"glimmer† and â€Å"holy†. Owen suggests that through pure emotions, the soldiers have their own special kind of funeral as the â€Å"pallor of girls brows shall be their pall†, which conveys how the sadness of their loved ones acts as their funeral covering. This substitution of emotions for the ceremonial objects continues in line 13, when the â€Å"tenderness of patient minds† metaphorically become these soldiers’ flowers. The last line of the poem is very powerful as it concludes the poem by showing how the deaths of the soldiers are being acknowledged in a way far superior to the religious ceremonies. Owen depicts the way in which instead of having the â€Å"drawing-down of blinds†, that is a traditional act of acknowledging their death, all of nature is metaphorically drawing the blinds by slowly becoming dark in a â€Å"slow dusk†. The adjective â€Å"slow† conveys the respect that all of nature is paying to these brave men, even as society forgets about them. Ultimately, Owen takes the reader through an incredible journey in this short but deep sonnet. He conveys the the horrors of war and depicts all the religious ceremony that these soldiers are ironically denied off. However, towards the end of the poem, Owen brings us to realize the strength of the emotions and sorrow of those who loved these youth as their raw feelings became the soldiers’ funeral. Although the poem is bleak and dark throughout, the last stanza is poignant and heartrending as we realize that emotions and love are stronger and more important than any customs or traditions.

Military Governments essays

Military Governments essays Military government, as is evident from the name, refers to the administration of a country by the military. Such a government may be formed when a country conquers another country and establishes a military government or after an internal take-over of power by the military through a coup d'tat. While such governments are a rarity in developed countries, they are quite common in the third world countries. This paper takes a brief look at the major strengths and weaknesses of military governments. The basic role of the military is the defense of a country's borders and to protect it from foreign aggression. It is generally expected to operate under the control of the civilian government. However, in a number of third world countries with no established tradition of civilian or democratic rule, the military acquires a lot of muscle and begins to harbor political ambitions. Due to strict discipline and a hierarchical administrative structure, the military organization is often contemptuous of the "undisciplined" manner in which a civilian seems to work and usually considers the politicians as deceitful and corrupt. It is by nature suspicious of any widespread unrest or signs of threat to security of the country. With such a mind-set, it is easy for the military to justify the take-over of the government on the pretext of corruption and misrule by a civilian government and for the "greater national interest." Strengths The major strength of a military government is its highly hierarchical power structure, whereby a military dictator can take difficult and bold decisions in times of emergency situations. Military governments also have a more efficient mechanism of implementing their decisions; hence such a government is able to bring riots and other law and order situations under control quickly by the use of force and by ...

Egyptian Korean essays

Egyptian Korean essays Everyone wants to have eternal life. From ancient Egyptians to generations now days, people feared mysterious world after death and tried hard to extend their life time. However throughout the history, people realized that death is something everyone has to face, and that there is no way to escape from it. People from different nations have their own way of defining death. I took the examples of ancient Egyptians and Koreans to compare. Egyptians believed that the afterlife is reemergence of best time of present world. They always imagined another world to come and prepared for it with confidence. Pharaohs and noble people spent many years to build their tomb, the pyramids. They employed special people to decorate their pyramids with different paintings and sculptures. These artworks usually described the activities which they want to continue afterlife such as hunting or feast. Koreans also believed in afterlife. However, they did not build fancy tombs or prepared death like Egyptians. Inspired by Confucian, they thought that remembering the dead is the most important thing. They had many rules to obey in dealing with death. The most conspicuous thing was costume and special ceremony. When a member of family passed away, everyone wore white clothing to express their grief. Men wore a strap around their arm and women wore white cloth on top of their head. In now days, men still wear a strap around their arm but women wear white hairpin on their head instead. Another interesting thing is that when ones parents pass away, the son had to build a small hut right next his parents tomb and guard it for three years. After three years, he would return to his home and he would hold a special ceremony once in a year to remember his parents. Ancient Egyptians mummified dead body to promise next life. They would remove all the organs expect the heart and embalm it. Then they would wrap the body with fine linen and place them in...

Women in Sports Essay Example | Topics and Well Written Essays - 1500 words

Women in Sports - Essay Example Women participation in sports/Olympics Considering the historical background of women participation in the Olympics, it is obvious that women have enjoyed nominal representation in ancient games. As Barbara L. Drinkwater comments; â€Å"Although the modern Olympic Games actually began in 1896, women were not permitted to participate† (Drinkwater & Inthe international Federation of Sports Medicine xi). Research professionals consider Amsterdam Olympics as a special one. This Olympics achieved international attention because of its women representation. In this game, a female participant had won the gold medal in Olympics history. Betty Robinson Schwartz is considered as the first female gold winner in the Olympics. In the Amsterdam Olympics, she created a new history in track and field (Zabell). Women fol,k have faced severe discrimination from the part of authorities and male community. Historical studies prove that the patriarchal society never ready to keep the achievements of women in the Olympics and other ceremonies. In 396 B.C. Olympics, Kyniska, a Spartan princess, won an Olympic chariot race, but she is banned from accumulating her prize in person (Anthony & suffragist). The problem of social attitude towards women part he participated in some sports items contributes supplementary causes for poor female representation. In the case of boxing, it is clear that the game requires a higher level of physical fitness and it is more stereotypically supposed for men. Boxing constitutes a psychological as well a physiological pace in which tension and emotional frustrations the can be revealed through the use of ropes and corners posts (Scott & Conover 40). Lack of opportunities for women in participating sports programs plays a vital role in the process of lowering women participation in sports and games.â€Å"Furthermore, in many countries, women have scarcely any opportunity of taking a sport in their leisure time† (Drinkwater & International Fe deration of Sports Medicine 17). Another important thing is that society always treats the woman as secondary to man. People never ready to admit to women participation in sports. Female’s sports participation turns down more speedily with age than does that of male, and is more vulnerable to the impact of family and domestic reasons sibilities than men (Houlihan 92). Considerable changes have been remarked in the field of women participation in the Olympics. A kind of gradual development in female participation in sports events and other physical activities. In 1900 Parris Olympics two items were included for women. The period from 1976 t0 88 was recorded by active women representation in sports and games (Lam & Chang 153). After that International Olympic Council (IOC) revived its manual and ensures active female representation in sports and games without gender discrimination.

Food Insecurity in Sub-Saharan Africa and implication to US National Essay

Food Insecurity in Sub-Saharan Africa and implication to US National Security - Essay Example In this regard, the Sub-Saharan Africa is the most hit by conflicts that can be associated with food insecurity. The conflicts that often emerge because of food insecurity tend to destroy local economies. As a result, there is forced migration, creation of refugee populations, emergent of diseases such as cholera and the collapse of social institutions. In Sub-Saharan Africa, food insecurity has contributed to civil wars, communal conflicts, and democratic breakdowns1. Where there is a conflict, other issues prop up, and they influence how people express their discontent with the lack of food security. Such factors are context specific and include demographic, social, political and economic factors. As a region that is still developing, the Sub-Saharan Africa relies on the Western countries for support to improve their institutions. In this regard, a major developed country that plays a key role in promoting social, political and economic development in Sub-Saharan Africa is the Unit ed States. However, as the problem of food insecurity continues to persist in the region, the United States finds itself involved in solving African conflicts2. As a result, it is plausible for food insecurity in Sub-Saharan Africa to have an implication on United States national security and the military respectively. In most Sub-Saharan Africa countries, food insecurity is a major issue and is often a result of scarce resources such as water and land. In the search for these scarce commodities, communal conflicts often emerge and can escalate to a civil war particular when the government supports one warring faction in the conflict. An example in this sense is the Darfur conflict that escalated into a civil war and displaced millions. Further, an increase in food prices creates conflict because, high food prices erode real income and the affected in extreme cases, are driven to drastic measures that include