Government Affairs

Question 1

16a. What is a collective security treaty organization?

Answer 1

A collective security treaty organization is an alliance or coalition of states that have agreed to mutual defense and collective security arrangements, whereby an attack on one member is considered an attack on all members, and they pledge to respond collectively to defend against external threats.

Question 2

16b. Can you name 2 CSTOs in which the US participates?

Answer 2

1. North Atlantic Treaty Organization (NATO)
2. Organization of American States (OAS)

Question 3

16c. What is a free trade agreement?

Answer 3

A free trade agreement (FTA) is a treaty between two or more countries or economic regions that reduces or eliminates barriers to trade, such as tariffs, quotas, and import/export restrictions, in order to promote increased economic cooperation and facilitate the flow of goods and services between the signatory parties.

Question 4

16d. Can you name 2 FTAs in which the US participates?

Answer 4

1. United States-Mexico-Canada Free Trade Agreement (USMCA)
2. Australia–United States Free Trade Agreement (AUSFTA)

Question 5

17a. What is the difference between the national debt, a budget deficit, and a trade deficit?

Answer 5

National debt is the total amount of money a government owes to its creditors. It accumulates from borrowing to cover when a government spends more than its revenue, that is known as a budget deficit. A trade deficit is when a country’s imports exceed its exports which then reflects a negative balance that might affect a budget deficit and in turn the national debt.

Question 6

17b. What is meant by the term “balance of payments”?

Answer 6

It is an economic indicator that tracks a country’s financial transactions with the rest of the world. This can fall under current, capital, or financial accounts. Overall, it is used to understand a nation’s economic performance.