Question: Can One Designate names as local in Operators in a worksheet?

The attached worksheet shows a simple operator to calculaute the cartesian product of a set. The code is executed in both 1D and 2D notation in the worksheet.  The code is also placed in a code edit region and in the startup code area if the worksheet.  When entered into a worksheet is either notation, it produces an error message,  Without the local designation, it executes with a warning message. When entered into a code edit region it executes without error or warning.

I assume that this behavior reflects a limitation of the 2d notation or is there a workaround to the problem?

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