The European Union (EU) is made up of 28 European countries that are bound together by trade and political agreements. The broad goal of the EU is to create an economic and political union that will foster common economic goals and political stability. The EU has achieved many of these goals over the last few decades but concerns in recent years about immigration and economic inequality have caused problems. Starting with the July 2016 vote in the UK to leave the EU (this vote has been called Brexit), other countries (including the U.S.) have seen the growing prominence of anti-globalization efforts. Some have called this a time of “ economic nationalism.” These efforts have the effect of driving countries to reconsider or remove trade agreements and to restrict immigration from other countries.

Leaders of countries around the world have responded in various ways. Most want to preserve political and social ties among countries. For example, Prime Minister Theresa May of the UK has said, “If we are to make the case for free markets, free trade, and globalization, as we must, those of us who believe in them must face up to and respond to the concerns people have.” Also, Chancellor Angela Merkel of Germany has sought an “open-minded” approach to globalization that includes freedom of movement among EU countries.

Though her country has voted to leave the EU, Theresa May has been working hard to preserve the trade agreements between the UK and other EU countries in order to maintain the economic progress and political stability that has come with EU membership.

Required

Explain briefly how you think the anti-globalization movements in the EU and the U.S. are likely to affect the work of the management accountant. What new challenges will the management accountant face? How will businesses and organizations have to change their strategies?