The Goy reference article from the English Wikipedia on 24-Jul-2004
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Goy

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Hebrew: nation, people. The first use in the Bible is when Abraham is promised that his descendants will form a great nation (Genesis 12:1). Generally, the word refers to the Jewish People in the Bible.

Historically, Goy (plural, Goyim) has come to refer to a member of the Gentile nations, i.e. non-Jewish nations. In this context it is usually considered derogatory. An offensive term for a Gentile is Shiksa if used for a woman and Shegetz (or Sheigetz or Sheketz) if used for a man (literally meaning abominable, see Leviticus 11:10). Shegetz is usually used to describe an anti-Semitic man. Shiksa is usually used to describe a non-Jewish woman who is married to or dating a Jewish man, given the fact that normative Judaism frowns on mixed marriages. A more polite form is Nochri (stranger). Classical Jewish literature refers to non-Jews as Akum (an acronym of Oved Kochavim u-Mazalot, "one who serves stars and constellations"). This is restricted to non-Jews who serve idols.

It should be noted that while all of these terms may not be meant offensively by their users, they will almost always be perceived as offensive by those they are used in reference to.

Judaism does not view non-Jewish as intrinsically unenlightened, and hence does not pursue an active proselytization. Rather, it believes that non-Jews (sons of Noach) can attain religious perfection by keeping the Seven Noachide commandments (Sheva Mitzvoth Benei Noach).