A relation over geographic regions:
New York State is within the bounds of the United States.
New York City is within the bounds of New York State.
Manhattan is within the bounds of New York City.
Manhattan is within the bounds of Manhattan; where else would it be? Because it is within New York City, it must be within the bounds of New York State, and therefore also within the bounds of the United States.
On the other hand, since New York City and New York State are two different things, not two names for the same thing, the above implies that New York State cannot possibly be within the bounds of New York City.
It is possible for a region to be within the bounds of two other regions, neither of which is within the bounds of the other, but that doesn't violate either the reflexive or transitive property.