Scholars in IHRM literature have long debated whether convergence or divergence will prevail through the forces of globalization (check for plag) (Paik, Hau-Siu Chow & Vance 2011, p. 648). The convergence approach argues that ‘best practices’ do in fact exist and can be applied universally while being valid and applicable, despite institutional culture or national culture (Pudelko & Harzing 2007, p.536). Convergence theory supports the universal application of MNC practices due to the notion of globalization and the argued diminishing differences between organizations (McGaughey & De Cieri 1999, p.236). Furthermore, convergence theory assumes that managers across the world hold similar attitudes and behaviours despite cultural differences that exist (Khilji 2002, p. 233). The problem with the idea of ‘best practices’ is it is not easily defined and often fails to take into account these cultural differences (Glinow, Drost & Teagarden 2002, p.124), which leads way to the argument for the divergence approach. The theory of divergence argues the opposite and contends that due to different national management methods, cultural and institutional factors, it is difficult for there to be cross-national learning of ‘best practices’ (Pudelko & Harzing 2007, p.537) and that due to these different factors, management practices tend to differ as a result (Khan 2011, p. 78). Furthermore, divergence theory supporters argue that the degree to which practices can be applied globally is contingent upon a variety of factors including specific contextual factors present in a certain industry and country (Paik, Hau-Sui Chow & Vance 2011, p. 648). The debates between convergence vs. divergence is also related to whether or not a MNC chooses to adapt to the subsidiary environment and localize practices, or if they instead choose to take a standardization approach and apply the ‘best practices’ to all locations (Björkman, Fey & Jeong Park 2007, p.431). Looking critically, it can be argued that whether a MNC chooses to localize or standardize their practices can be influenced by the approach the MNC takes, as well as by home country vs. host-country effects. Home County vs. Host-Country Effect>