Answer: Magical realism is set in the everyday world, so you should choose a setting for your story that is based on an actual location. You should not create a new world for your story.
Explanation:
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"His eyes, too, were black and very bright. He had high cheekbones, a sharpcut nose, a spare, dark face—the face of a man used to giving orders, the face of an aristocrat."
Zaroff