Countryhumans have two worlds they can access. The original world, and the battle plane. The original world is pretty much the same landmarks and land formation as our world, except it's a bit smaller.
Cityhumans sometimes live together in groups of ten to twenty, and choose the largest city located near them to reside in. Cityhumans normally only live with cities in the same state/subdivision as them. Statehumans all live together, no matter how many of them there are. Like Cityhumans, they only live with Statehumans related to their country. They sometimes travel back to their territory.
Countryhumans live alone, sometimes allowing their capital city, or largest states to live with them. They often live in a grand palace, or sweet little cottage, depending on how big of an ego they have :)
Time is strange in the CH world. Sometimes, time can go by quickly during battles to make up for the lack of humans. Other times, it goes slower.
Now let's discuss the Battle Plane. When a country goes to war, they are transported to a much smaller version of the world. Everywhere around them is dark, and they can barely see two feet away from them (if their technology is good, they can see a lot further). Do you know Kosovo (present day)? Countryhumans in this map are about as tall as Kosovo is long. So with large countries fighting on multiple fronts, it takes them a long time to get from one side to another. (Imagine how hard it is for the Russian Empire :D)
To gain land, countries simply have to begin walking on someone else's land, and it will start to get claimed (unless they are walking through someone's land to get to another country, in that case, it will not be claimed). Depending on how good their communications technology is, the defending country will be alerted that someone is trying to take their land. Then, the war begins.
Countries often fight with swords, even if their current technology in our world allows them to use guns. This is because guns are highly effective at killing someone, so battles would be over in a second. Guns will often be used at the end of a war, when the attacking country is gaining land quickly.
Peace treaties are signed in the original world, wherever the winning country pleases. It is often done in capital cities.