What does enclave mean?

An enclave in finance refers to a specific area within a country or region that operates under its own set of rules and regulations, often with special economic benefits or incentives. This can include special tax treatment, relaxed labor laws, or other favorable conditions designed to attract investment and business activity. Enclaves are typically created to promote economic development in a particular area and can be found in free trade zones, special economic zones, or other designated areas. They are often used to attract foreign investment and facilitate international trade by offering a more favorable business environment. Enclaves can also be used to promote specific industries or economic activities, such as technology or manufacturing, and can play a significant role in driving economic growth and development in a region.