Melting pot or tribe? Country-level ethnic diversity and its effect on subsidiaries

The animation focuses on the impacts of the global economic crisis of 2007, and how countries have become more openly critical of multiculturalism, suggesting that greater diversity is more likely to generate greater socio-political conflict and significant economic costs. However, recent research shows that high levels of diversity are not a form of country risk, it is the ability of a dominant ethnic group to exclude others from full economic and political participation that increases this level of risk.