National economies have become irreversibly globalized while racial and ethnic divisions continue to be a reality in many societies. The author has set forth three different scenarios in an attempt to explain the link between globalization and racial and ethnic relations: (1) globalization limits national growth, thus contributing to increased racial and ethnic tensions; (2) globalization does not affect racial and ethnic relations either positively or negatively; and (3) globalization expands domestic economies, consequently helping to reduce racial and ethnic tensions within national borders. This article explores these scenarios and shows that globalization through immigration and movement of capital can mold the nature and contours of race relations in domestic societies.



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