A more thorough explanation:

Definition: Exteritoriality is the same as extraterritoriality, which means the state of being exempt from the jurisdiction of the country in which one is present.

Example: Diplomats and their families are often granted exterritoriality, which means they are not subject to the laws of the country they are living in. For example, if a diplomat from the United States is living in France, they would still be subject to U.S. laws and not French laws.

This example illustrates how exterritoriality works in practice. It shows that even though someone is physically present in a foreign country, they are not subject to the laws of that country if they have been granted exterritoriality.