Final answer:
Social closure describes the process whereby groups maintain exclusivity and privileges by limiting outsiders' access, especially based on racial discrimination. Institutional racism is a key concept here, referring to the discriminatory practices embedded within societal institutions that systematically disadvantage minority groups.
Step-by-step explanation:
The term describing the collective dynamics of racial exclusion that limits competition and produces group benefit is Social closure. This concept refers to processes by which social groups maintain their resources by the exclusion of others from their group based on varied criteria, including race. When discussing racial issues and civil rights, Institutional racism becomes highly relevant. It is defined as racism perpetrated by social and political institutions that have the power to affect large groups of people. These institutions, which include the judicial, executive, legislative, and bureaucratic branches of government, might enact laws and practices that create and perpetuate racial inequity.
Institutional racism can manifest in both overt and covert ways, such as racial profiling, biased legislation, and systemic discrimination in areas like education and employment. It's evident in systematic disparities in resource distribution, power, and opportunities which disadvantage minority groups. Despite social movements demanding political change, it's the institution's responsibility to address and correct past discrimination to ensure equity for all.