The most commonly used Hebrew or Yiddish word for a non-Jew is goy. The word “goy” means nation, and refers to the fact that goyim are members of other nations, that is, nations other than the Children of Israel. There is nothing inherently insulting about the word “goy”. In fact, the Bible occasionally refers to the Jewish people using the term “goy”. Most notably, in Exodus 19,6, God says that the Children of Israel will be “a kingdom of priests and a holy nation”, that is, a goy kadosh. Because Jews have had so many bad experiences with anti-Semitic non-Jews over the centuries, the term “goy” has taken on some negative connotations, but in general the term is no more insulting than the word “Gentile”.
In 1958 David O. Selznick (1902-1965) producer of Gone With the Wind, was desperately seeking a starring role for actress Jennifer Jones (1919-2009), to whom he was was married after divorcing Irene Mayer Selznick.
Screenwriter Ivan Moffat (1918-2002) was one of dozens of writers Selznick approached to dream up the proper vehicle for Jones.
Selznick and Moffat became good friends, and eventually, Moffat wrote the screenplay for Tender is the Night (1962) in which Jones starred.
One night, at a lavish Hollywood party, someone asked Selznick to define the word goy.
Selznick gave Moffat a quick, private grin and delivered his own unique definition of goy: “Somebody who is unnecessarily Gentile.”
Highly recommended source: Showman: The Life of David O. Selznick by David Thomson.