People of color is more used as if someone might be mulatto, or might have colour. People of colour is more used for anyone that isn't white/in a minority group, including Asians. The both can have the same meaning, someone who haw a lot a melanin that usually isn't white, and coloured people is more someone that is not white. I hope that makes since.
The social interaction can change because when you think of the word, coloured people, that is something more associated with things like lynching, racial discrimination, slavery, The Trail of Tears, etc., this topic can make certain people uncomfortable changing the atmosphere of the conversation. If you say people of colour, it applies on a broader stand than just the races that were discriminated in America (African-Americans, Latinos,Japanese people, people from the Middle East, Native Americans, the list goes on and on and on, like, never ending...) but to a broader stance of people of colour around the world, which can be more interesting, with culture, wanting to visit, and sometimes cultural appropriation and topics like that, but still!
The argument for factions by James Madison is made in his essay Federalist No. 10, the tenth of The Federalist Papers. It was published on November 22, 1787 under the name "Publius". Here Madison argues that even though factions divide the people and may cause disunity in a country, it should not be eliminated by blocking the liberty and freedom of the people
In one study, participants were presented with a list of traits about a hypothetical person while simultaneously watching a video about Indonesia. In one condition, the traits were accompanied by an applicable stereotype (e.g., skinhead); in the other condition, the traits were presented without a stereotype. Results showed that participants in the stereotype condition remembered the trait information better and performed better on a surprise multiple-choice quiz about Indonesia.