Nude in an exotic act or show (7)
I believe the answer is:
cabaret
'show' is the definition.
(I know that cabaret is a type of show)
'nude in an exotic act' is the wordplay.
'nude' becomes 'bare' (synonyms).
'in' is an insertion indicator.
'an exotic' is an anagram indicator (an unusual form of the letters).
'act' is an anagram of 'cat'.
'bare' inserted within 'cat' is 'CABARET'.
'or' acts as a link.
(Other definitions for cabaret that I've seen before include "Series of acts" , "Entertainment at restaurant" , "Bear cat (anag.)" , "Floor show for Arab etc" , "Nightclub entertainment, floor show" .)