Cite the two most obvious advantages and disadvantages of enclave economy supported by reliable academic literature data and cite the sources of accessible websites
Advantages:
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Economic growth: Enclave economies can drive economic growth in a region by creating jobs, increasing investment, and generating income. This can lead to the development of supporting industries and infrastructure, which can further boost economic activity. (Source: "Enclave development and sustainability in emerging economies: The case of China's Shenzhen Special Economic Zone" by X. Fu and Y. Zhang, Sustainable Development, 2016)
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Increased exports: Enclave economies can specialize in certain products or services and focus on exporting them to other regions or countries. This can lead to increased foreign exchange earnings, which can help to improve the balance of payments and strengthen the economy. (Source: "Export processing zones and their impacts in the developing world: A review of the literature" by C. DeLorenzo, Journal of Economic Geography, 2015)
Disadvantages:
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Limited benefits for local communities: Enclave economies can provide limited benefits to local communities, as many of the jobs created may be low-skilled and low-paying. Additionally, enclave economies may rely on imported goods and services, which can limit the development of local industries and the circulation of income within the region. (Source: "The limits of enclave theory: The case of the maquila industry in Mexico" by D. Pieterse, Economic Geography, 1991)
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Vulnerability to external shocks: Enclave economies can be vulnerable to external shocks, such as changes in global demand, currency fluctuations, or political instability. This can lead to job losses, reduced investment, and economic downturns, which can have negative impacts on the regional economy. (Source: "The enclave economy and the fragmentation of the state: Implications for economic and political development" by T. Joseph, Political Geography, 1997)
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