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The term “race” refers to groups of people who have differences and similarities in biological traits deemed by society to be socially significant, meaning that people treat other people differently because of them. Meanwhile, ethnicity refers to shared cultural practices, perspectives, and distinctions that set apart one group of people from another. Ethnic differences are not inherited; they are learned. When racial or ethnic groups merge in a political movement as a form of establishing a distinct political unit, then such groups can be termed nations that may be seen as representing beliefs in nationalism. Race and ethnicity are linked with nationality particularly in cases involving transnational migration or colonial expansion. Anthropologists and historians, following the modernist understanding of ethnicity, see nations and nationalism as developing with the rise of the modern state system. This culminated in the rise of “nation-states,” in which the presumptive boundaries of the nation coincided with state borders. Thus, the notion of ethnicity, like race and nation, developed in the context of European colonial expansion, when mercantilism and capitalism were promoting global movements of populations at the same time that state boundaries were being more clearly and rigidly defined. Theories about the relation between race, ethnicity, and nationality are also linked to more general ideas concerning globalization and populist nationalism.