How to select/display only XY points inside a polygon?

I am using basic world map from MediaKit (country.shp), GCS_WGS_1984, D_WGS_1984, PrimeMeridian = Greenwich - ArcMAP 10.1.

I have a series of XY decimal Longitude/Latitude points within a large area of the world (i.e. Europe) and they display properly. {I use AddData ==> AddXY data to get the point added as a layer} I wish to select/filter/??? so that only those XY points within (i.e. France) boundaries are displayed. My desired polygons are bounded very nicely by the {countries} in the MediaKit. Are there 'functions' or 'tools' in ArcMAP that will assist me in this? Do I need to build a geodatabase? I am using VisualFoxPro for my database engine.

I apologize for any errant terminology I may be using - this is not my area of expertise... Definitely a newbie!

Thanks! zeker00