There are historical precedents for the mass production of ethnic dolls. Did you know Marcus Garvey set up a factory to produce black dolls?
In a darker era in U.S. history, companies produced racist caricatures of many ethnic groups, but especially of African Americans. These toys and collectibles are featured at The Jim Crow Museum of Racist Memorabilia. (Click on the link, then scroll down for a menu of categories of caricature.)
Curator David Pilgrim explains why the museum collects racist memorabilia.