Fully explain the effects that payment like those which Lockheed made to the Japanese have on the structure of a market?

There is a lot of dispute on how foreign aid can actually have an impact on economic growth. There are many studies out there that look at this, and they all come to the same conclusion - nobody knows! Of course, many people claim to know (and most of these people have a clear political alignment). This is understandable given that foreign aid, like that provided to the Japanese, is very much debated in the political arena.

Everybody claims to know whether or not foreign aid is beneficial but nobody seems to be really coming up with an answer. So let's look at the basics.

• Foreign aid is good for the receiving country

There is no question that when it comes to receiving foreign aid, there is some kind of benefit. A country that receives money from another country without having to do anything at all will be benefiting without question.

Whether or not the money provides a huge surge in economic growth is disputed, but it does remain that some kind of benefit must be applied given that foreign aid is nearly always an incredibly large sum of money.

• The effects
  

The effects that it can have to the economic growth of a country and the structure of a market can vary. It all depends on where the money is actually allocated. Is the money being given to the private sector? Is the money strictly public sector? This makes a huge difference when the market is involved.

However, you must consider that foreign aid is not really great for the country that's paying. Economic growth can be said to slow down in a country that is providing excessive foreign aid, as in a time of economic crisis, even more money is being drained out of the economy.

It's really down to you to draw your own conclusion as this is very much political - but do recognize that there are some obvious advantages and disadvantages to the concept.