Simple answer: embassies/high commissions are in capital cities, consulates are in major cities or important locations.
As a general rule, an embassy and embassy staff exist as an official channel – in all facets of policy – between 2 sovereign nations. Consulates provide government services to expatriate citizens and aliens requiring government services.
Some embassies enjoy the protection of extraterritoriality (i.e. the embassy is “sovereign soil” of the nation it belongs; and foreign authorities require an invitation to enter). Consulates do not enjoy this protection. Staff at both however are afforded diplomatic immunity.
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