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I'm not sure if wet back, frog or limey are particularly racist, more of a slur. But there has been exploitation of the mentally retarded, disabled and homosexuals in the forums for quite some time.
The Brits have indeed made some decent horror movies, but back to audience identification - I think the embrace of Oriental horror in general in the West is largely exotic curiousity, allowing many of the films to escape the net of scrutiny even though the same themes are being repeated time and time again. Unless perhaps you have Oriental roots, it is more difficult to extract a range of feelings from the dialogue and as such we interpret most of the film from the surface. You could perhaps say the same about French or German productions, but in the UK at least, their cultures are closer to home and more easily recognised.
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