Potentially yes, you could create such a setup, and probably the best method would be via a
multisite setup. It's obviously a little more involved than a single installation with one instance of WordPress/ClassiPress, but it would give the most desired outcome.
If you check out this site as an example: fleabay.net this is a similar premise where the user has created a multisite setup so that each state has its own instance. You could obviously do the similar kind of thing with countries. They have of course done some amount of customization also, but the idea is there.
If the actual installations don't need to be connected in any way, then there is no reason you couldn't simply install the theme on separate directories, each with its own domain name..
