How would economists characterize the relationship between globalization and poverty? Multiple Choice Globalization has caused the gap between rich and poor nations to shrink and poverty levels to decline. Globalization has improved the lot of the world's poorer nations which has led to an overall decrease in poverty. The movement of labor to developed nations because of globalization has contributed significantly to the increase in poverty. Globalization has caused an increase in poverty as well as an increase in the gap between rich and poor nations