Becoming Rich with Daily Scavenging APP-Chapter 667: Soybean Subsidies

Chen Yiyang understood the meaning behind Schaefer's words.

True businessmen are actually not generous.

Their greed for profit exceeds what ordinary people can imagine.

In social settings, they can spend lavishly, treating you to eating, drinking, and entertainment.

But once at the negotiation table, they will argue over every single dollar.

The second or third generations might be generous at the negotiation table, but after being deceived a few times, they too become cautious.

However, McComick isn't even from the second generation; he's a first-generation self-made millionaire.

How could such a self-made millionaire offer such generous terms for cooperation?

If Chen Yiyang could sell each Moore Detector for three to four hundred thousand, wouldn't he be earning even more than McComick?

Moreover, explosive detectors should be highly technical products.

Typically, cooperation with someone like Chen Yiyang would involve signing agreements to prevent him from using the Moore brand to sell other similar products.

Strict prohibitions against reverse engineering or imitating the Moore Detector must be explicitly stated in the contract.

But tonight, none of these were mentioned by the other party.

Combined with the false elegance of the British gentleman the other party was portraying, this raised Schaefer's suspicions.

Even though Schaefer said this, Chen Yiyang still had some doubts.

Schaefer had been deceived more than once or twice himself.

His instincts being inaccurate is certainly common.

Forget it, just carefully observe tomorrow when visiting McComick Company.

After waking up the next day.

After breakfast, Chen Yiyang didn't rush to contact McComick.

Besides the cooperation with McComick, he also had another business deal to negotiate.

That was the soybean trade with Carlos.

He found some domestic bosses engaged in the import and export of soybeans to discuss Carlos's offer.

As soon as these bosses heard Carlos's offer, they immediately expressed skepticism.

Because Carlos's price was simply too low.

"Mr. Chen, let me put it like this," said a soybean trade boss to Chen Yiyang. "The price you're mentioning is definitely not the price Argentina can sell at.

Even if Argentina doesn't collect export taxes, exempting domestic farmers from tariffs to sell soybeans to our country, this price would still cause them to lose money."

This boss also educated Chen Yiyang on the soybean market.

Due to soybeans not being able to be stored for long, typically they need clients arranged and sold in bulk before harvest.

Thus, transactions in the soybean trade market are seasonal.

The next soybean harvest season is in a month.

And globally, major soybean farmers have already planted soybeans early.

Including farmers in North America.

No one understands why these North American farmers dare to keep planting soybeans amid trade wars.

But indeed, they have planted enough soybeans according to the quantities they used to sell to Huaxia.

According to domestic soybean trade bosses, North American farmers might believe that, at most, the two countries would impose a 20% tariff on agricultural products.

Even with this tariff, North American soybeans still have price competitiveness due to large-scale mechanical planting.

This boss indeed admitted that in the current market, North American soybeans still hold a slight advantage.

So, barring major surprises, domestic soybean traders will continue purchasing soybeans from North America.

After the phone conversation with the boss, Chen Yiyang called Carlos.

"Carlos," Chen Yiyang said bluntly, "I spoke with people engaged in soybean trade in our country.

They said it's impossible for Argentinian soybeans to meet the price you mentioned. Do you have anything to add?"

"Under normal selling conditions, indeed our Argentinian soybeans cannot be this cheap,"

Carlos had anticipated Chen Yiyang's questioning and said, "However, recently, our government decided to provide large-scale subsidies to domestic soybean farmers and canceled soybean export tariffs.

With tax exemptions and subsidies, our soybean prices are this low."

"Subsidies?" Chen Yiyang asked with confusion, "I heard your country's currency has severely depreciated."

"Yes, but the subsidies given by our country are directly in US dollars.

With these US dollars, we can avoid domestic currency depreciation and directly purchase raw materials and agricultural tools in the international market, reducing planting costs."

Carlos's words made Chen Yiyang feel even stranger.

Argentina's recent turmoil boils down to one main issue:

They owe too many US Dollars, which they cannot repay.

As the saying goes, domestic debt is not real debt; foreign debt can be deadly.

Owing domestic currency, no matter how much, can be managed by simply printing more money, slowly repaying through inflation.

But if foreign currency is owed, export is the only way to earn foreign currency and repay the debt.

Domestic maneuvers are useless.

Argentina owes too much in US Dollars, such that creditors have even seized their navy ships during foreign visits to settle debts.

This fiasco lasted several months, with Argentina eventually appealing to the international tribunal to affirm the ships' immunity from seizure.

Only then was Argentina able to reclaim its naval ships.

But the ruthlessness and far-reaching influence of Argentina's creditors were made evident.

Thus, Argentina genuinely lacks US Dollars these past years.

They don't have foreign currency to repay debts, so where would they get the money to subsidize farmers?

In response to Chen Yiyang's inquiries, Carlos didn't elaborate much, but suggested he look up news reports to see how the US Dollars came about.

So, Chen Yiyang searched.

And indeed, he found news of a financial aid package that gave Argentina US Dollars to subsidize domestic farmers and abolish export tariffs.

The benefactor turned out to be North America itself.

North America had previously announced a 20-billion-dollar aid to help stabilize Argentina's economy.

It seems this money truly went towards stabilizing the economy.

Since Argentina is a major grain exporter.

As long as domestic farmers can normally sell food crops abroad in exchange for foreign currency,

Argentina can avoid domestic farm bankruptcies and retrieve these foreign funds.

A win-win situation.

As for the resulting minor hiccup of unsold North American soybean inventory,

That's not Argentina's concern.

Upon seeing this news, Chen Yiyang could already imagine in his mind;

Once Argentina's soybeans enter Huaxia, North American agricultural heads will be furious with their finance officials.