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The nationality and etnicity of newgens must be looked into until FM08.
Don't know how it is in other countries but here in Sweden there's almost NO-ONE that has a Swedish firstname and then a foreign surname (or the other way), but in FM that happens all the time and it's annoying. This has been a issue for several versions and it can't be so hard to fix it.
Why not just create a database with names based on where they are used (Swedish name, English names, Iraqi names and so on) and then fix it so that the countries uses names from different countries depending on how's the demographic is in the country. In Sweden there's 16,7% of the population that has at least one foreign born parent, either SI take it serious and set the number to 16,7 or make it a little easier and makes it 15 or 20 percent.
And then when newgens comes, 80% of them have names from the Swedish name-database and the rest are from large immigrant groups (in Sweden mainly Finland but also Turkey, Iran, Iraq and the other nordic countries). And maybe also leave 2.5 or 5 percent that can be from a random name-database in the world. Maybe a MAXIMUM of 1% can have mixed Swedish and another (in Sweden).
The same goes with etnicity, of course there are exceptions but them are rare in reality but in FM they are everywhere.
Note: Some, maybe 30% of the players with names from another country than the country them are generated in should have a second nationality of the nation he has his name from.
the least realistic case i've seen was a newgen generating at a bundersliga club, with turkish as his sole nationality, who was of turkish ethnicity judging by his facegen, and who had no second nationality, yet had a german first name and surname.
it's good that fm is able to reflect the role of immigration in football (france and sweden being particularly good real life examples of how this can benefit a national side) but it can be improved