11. Foreign direct investment in several sectors in India is still heavily regulated. After much debate, the government of India recently relaxed restrictions on foreign direct investment in the retail sector. Purportedly for reasons like national security and possible job losses, many sectors of the economy (such as defense, nuclear power, and oil refining)

are not fully open to foreign direct investment. Suppose you are hired to serve on the government’s Working Group on Foreign Direct Investment. What would you suggest to the government? Defend your position.