I doubt that there is a single person on this planet who is not racist to some degree, even if it is on small issues. To try to deny it is ridiculous. We all have stereotypes in our mind based on our personal experiences, upbringing and education. This may even come down to how we view people from the next village.
The main difference is whether or not we are prepared to suspend those prejudices when encountering people of another ethnicity or culture and deal with them simply as individuals. If we can do that we will find that some we can get along with and others not, just the same as with the people in our own tribe.
Spot on. Racism is prejudice based on ethnicity.