Find and summarize (in 1,000 words or less) some of the work that has been done by Katherine Pistor and others on convergence, divergence, and "path dependence" of legal systems as they relate to international corporate governance. In recent years, the issue of corporate governance has become a hotly debated topic in international finance. In developed countries, some of the biggest corporate collapses in history have led to a shift in focus. Governments and lawmakers are no longer trying to deregulate and reduce corporate controls and disclosure requirements. The deregulation boom ended with the return of regulation. After the Latin American crisis of 1995 and the Asian currency crisis of 1997-1998, corporate governance is also a major concern in developing countries. Questions arise about the optimal set of rules and regulations that govern businesses. One of the main points of discussion in this debate is how corporate governance and legal systems evolve of their own accord, and particularly in relation to each other. There are two schools of thought on this issue: those who believe in convergence and those who believe in divergence. The convergence school asserts that countries select laws that have proven most effective in other countries, due to competition among regulators. On the other hand, the divergence approach asserts that laws are path dependent, meaning that legal rules are determined by pre-existing structures and laws. Convergence In an increasingly globalized world, new technologies and efficient production systems spread rapidly, as competition rapidly eliminates these producers. who are slow to react. Those who believe in convergence argue that "just as the founders of a company have an incentive to make the type of products that people want to buy, legislators have an incentive to create the type of company, governance structure, and securities that customers want to buy. " (Easterbrook & Fischel 1991, pp. 212). As barriers between countries fall, companies can more easily locate in countries with the most attractive corporate governance rules. Inevitably, he argues -on, the world will evolve towards a set of harmonious legal rules. Why then do the legal rules that we observe around the world differ so greatly? This is the question posed by the divergence school of thought..