The struggle is real when trying to think of ways to box music in general, but trying to box music from around the world into one singular genre is particularly hard, and I don't really like doing it. Why? Because both you and I know that when I'm talking about world music, I'm not talking about releases from the UK or US, and because it suggests that there is almost a superiority to western experiences and releases, when I don't think thats the case.
But I will probably continue to use the term 'world music', (which I found out recently was coined in a pub back in the 70's), whilst also bearing in mind that the UK and US is part of the world. However, if you ever hear me saying "exotic", or "ethnic" music we have a major issue - and something has possibly gone very wrong, we've crossed a boundary with that one, so remind me that it's "music of [the] people, it's music of our neighbours".