P.S. What is the "correct " term, and what is "politically correct" and what is "derogatory" changes every few years/every generation.
I could be slightly inaccurate but first even they called themselves Negros. Then that was derogatory. So they where black. Then that was Derogatory. Then they where African Americans. Then that was derogatory (or at least inaccurate as Black people not from Africa didnt want to be called african). Now they are Black again.
It is the same with Midgets, Dwarves, Little People, Whatever is correct now.
It doesnt help that no one can agree on it. And by "it" I mean Anything.
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It was an issue when you where a Kid. Maybe you didnt see it. Maybe the people in your community had a consensus. Thats what happens when people live with each other. They talk the same.
And no if someone is born from somewhere else they would be African/Asian/Whatever. There is a grammatical difference between Asian-American and an American who happens to be of Asian decent (Or American who is Asian).
The first describes the Origins of the American's heritage, the second Lists what his Country is and then lists what his ethnic is.
Country and Ethnic are not the same thing.