Answer:
Racism leads to the belief that one race is better or of "higher-standard" than another. The race that is "master" would then, obviously, be able to subject other races, including making them slaves (people who work for them without pay). Because of racism, they believe that lower-class races would need to be obligated to serve higher-class races, or Aryans.
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Well that would likely hinder the trade for such nation, like China. China has a TON of industry, and what would happen of it couldn't reach outside its borders? The economy would plummet! It would weaken every aspect of the nation.
