Folk is related to Story. you are likely to find Cat in/at/on Story. you are likely to find Cat in/at/on Sofa. Sofa is related to Rest. 
you are likely to find Union in/at/on Democracy. Union is related to Government. Government is related to Treaty. 
Folk <--RelatedTo--> Story <--AtLocation-- Cat --AtLocation--> Sofa <--RelatedTo--> Rest 
Democracy <--AtLocation-- Union <--RelatedTo--> Government <--RelatedTo--> Treaty 