Chapter 146: Geographical Protectionism

"Wait! Mr. Reboudin, please wait a moment!"

"What else do you have to say, Mr. Black?"

Reboudin stopped at the door of the private room, his face showing signs of impatience as he turned back, eyes fixed on Carter, the "culprit." If not for his long-standing self-restraint, Reboudin might have ignored him altogether.

No one would have goodwill towards someone they suspect intends to exploit their hometown. Even if this was merely a guess and Carter's intentions were different, it wouldn't change anything.

"Mr. Reboudin, please believe me! I truly have no ill intentions. We came to Pearson not to drain it dry. Just think, I just took over Forest Bank from the FDIC. What good would it do me to turn around and drain the city dry?"

Cold sweat formed on Carter's back. His previous confidence was long gone...

Indeed, his burrito business might be a powerful tool in these tough times. But this tool was a double-edged sword!

It could create a significant market impact, taking on fast food giants like McDonald's and Burger King with a differentiated approach. But at the same time, it could also backfire...

Reboudin's words suddenly brought a term to Carter's mind: geographical protectionism!

Having lived in the United States for so long, Carter had gradually understood that beneath its glamorous surface, filled with vibrant nightlife and dazzling lights, lay numerous instances of local protectionism and conservative local thoughts.

These differences were even more pronounced than the developmental disparities between the eastern and western regions of China. Frankly, cities on the east and west coasts of the United States and those in the south and midwest often seemed like they were in different countries. Their differences in scale, industrial structure, and residents' thoughts and qualities were stark.

If Carter were opening his burrito shop in New York or Los Angeles, he certainly wouldn't hear the kind of objections Reboudin just raised. These cities naturally attracted substantial external funds and had no fear of a small fast food chain making waves. Their residents also had a strong acceptance of new things.

Perhaps it was because these cities never lacked an influx of external funds. This gave their city governments strong risk tolerance, making them open to new enterprises and trends, confident they could handle any disruptions.

However, in the relatively impoverished mid-south regions, in a small city like Pearson, a business with exaggerated revenue could genuinely threaten the city's stability!

As Reboudin said, if your prices drop below a certain threshold, it becomes dumping!

Upon thinking about dumping, Carter instantly grasped why Reboudin was so furious. As someone with a deep understanding of the harms of dumping, Carter knew the severe impact it could have on the local economy...

The influx of cheap goods would make local products uncompetitive, leading to reduced sales and market share. This would cause income to drop across related industries until they couldn't sustain themselves and declared bankruptcy.

Then the entire industrial chain would be acquired cheaply and controlled by the dumpers, who would also take away large sums of money. This would make it even harder for an already struggling area to recover...

Between countries, tariffs could be used to balance the effects of dumping, the so-called tariff protection. But between two cities within the same country, Pearson had no right to impose tariffs!

Therefore, Reboudin could only use administrative orders to limit Carter's burrito invasion...

While understanding Reboudin's perspective, Carter couldn't help but feel conflicted. Theoretically, the harm seemed significant, but his burritos were not difficult to replicate! Even if no one currently knew how to make corn tortillas, finding someone who did would be incredibly easy...

In Latin American countries, you could randomly find an older lady who could make corn tortillas exceptionally well, certainly better than Trifali, a fake chef. And even in a tough economy, many still viewed America as a paradise, a beacon...

"I admit, this trip was a bit hasty, and I was not thorough in my preparations. Mr. Reboudin, please calm down and sit back down so we can discuss other solutions. Please believe me, in terms of protecting Pearson's economic development and maintaining stability, I am on the same page as you!"

"Yes, Hart! Originally, I planned to have dinner with Carter in Douglas tonight, but he suddenly thought about the unemployment issues here in Pearson and brought me along. We only decided to come at 3 PM this afternoon, so there was no time for detailed planning. Even Mr. Trifali was called in last minute while we were already on the way."

"Yes, yes, they're right…"

As Benjamin sighed and joined Trifali in persuading Reboudin to stay, the sudden turn of events caught everyone off guard.

On the way, Benjamin had learned about Carter's acquisition of Forest Bank and his struggle against the Argyle banking alliance with the FDIC's Atlanta division. Knowing this, he understood Carter's sudden change of heart in helping Pearson.

Had Carter acquired a commercial bank, Benjamin might have suspected Carter of intentionally hiding his true motives to exploit Pearson. But since it was a savings bank, such exploitation was out of the question. While savings banks might not seem highly profitable, their stability far exceeded that of commercial banks!

Faced with a choice between stable, modest, long-term profits and potentially high but risky gains, most would choose the former!

To ensure the first option was effective, Carter could not afford to destabilize Pearson's market. If he wrecked Pearson's economy, how would he attract savings and generate revenue?

"I hope so. Alright, let's continue our discussion, but not about the restaurant. I won't allow it. The impact would be too great for Pearson to handle. Unless you agree to a price limit agreement, it's off the table!"

Watching Reboudin sit back down, Carter's mind raced. He wasn't thinking about the price limit agreement—signing that would be like cutting off his arms, stripping away his core advantage, rendering the restaurant useless...

But just as he was thinking about geographical protectionism, didn't another thought come to mind?

New York? Los Angeles??

"Um… Mr. Reboudin, I still want to talk about the restaurant…"