In the context of law and governance the word “country” means something very different from what many citizens believe it means. This article: The Framework For Law And Governance explains in detail the relationship of a country to its citizens.
A country is a body politic (polity) which at law is a Legal Fiction. Below is the definition of the word, which is what it sounds like; fictional. Therefore using common sense, a “people” can not live in a legal fiction, a creation of the law, a polity, that is an impossibility.
A word that is very closely linked with polity is policy. A country is run under the policies of its political leaders, and the police ensure conformity to the polities policies. The root word for all of these similar sounding words above is: polis; which means city, state.
In terms of law and governance a country is a polity which is a (body politic) political organisation of the public body as a whole, who are the state. At law a country is what is known as a legal fiction and or “person“.
A nation is a people on a land mass such as Britain, as opposed to the country (political organisation) United Kingdom. As is the same at America (land mass) and the USA (political organisation). In common sense terms a “people” can not live in a body politic (a legal fiction) that is impossible. Which is why “persons” which are a creation of the state “live” in the UNITED KINGDOM.
For more information on what a nation is see: