A more thorough explanation:

Definition: Territorialism is a traditional approach to choosing which state's law will be applied in a case. It is based on the place of injury or contract formation.

Example: If a person is injured in California, but the company responsible for the injury is based in New York, the court may apply California law or New York law based on the territorialism approach.

This means that the court will look at where the injury occurred and where the company is based to determine which state's law should be applied.

Overall, territorialism is a way to determine which state's law should be applied in a case based on the location of the injury or contract formation.