Final answer:
The sale of Radonia's national railway service to Dontsky Rail Corporation is an example of privatization, a process where a government-owned industry is sold to a private entity. This trend has been part of a global move towards privatization that emerged in the 1980s, considered a solution to the inefficiencies of nationalized industries.
Step-by-step explanation:
The sale of Radonia's national railway service to Dontsky Rail Corporation is an example of privatization. Privatization is the process by which a government-owned business, service, or industry is sold to a private entity and is subsequently managed by that private entity for profit. This transition can include governments divesting themselves from certain businesses like railways, utilities, or other services. The trend towards privatization gained significant momentum in the 1980s as a response to inefficiencies perceived in nationalized industries, where the state owned and operated enterprises in the name of public interest. In the case of the national railway of Radonia being sold to private hands, it mirrors the shift from public to private that is typified by similar processes in other countries and industries.
Examples of privatization include India’s move under Rajiv Gandhi to privatize previously nationalized industries and the full privatization of the Student Loan Marketing Association (Sallie Mae) in the United States. On the other end, nationalization refers to the process where a private industry is taken under government control and operated for the public good, often without consideration of profit. This approach was common during earlier periods of post-colonial development as seen in India and many African and Asian countries. However, the shift towards privatization has been encouraged by organizations like the World Bank and the International Monetary Fund to promote efficiency in public services.