Final answer:
Decentralization is exemplified by the UK's devolution process creating regional governments, the decentralized decision-making in market economies like the New York Stock Exchange, and the power division in federal systems such as the United States.
Step-by-step explanation:
An example of decentralization is the creation of regional governments in Scotland, Wales, and Northern Ireland by the UK government. This process is known as devolution, which delegates specific responsibilities to subnational governments, making previously centralized power more spread out. Other countries with unitary systems like France, Japan, and Sweden have similarly moved toward decentralization.
In contrast to command economies, which have a centralized decision-making structure, market economies exhibit decentralization. The New York Stock Exchange is a prime example of a market institution that facilitates decentralized decision-making by bringing together buyers and sellers. Here, market forces and private enterprise drive economic decisions rather than a central authority.
Furthermore, federalism in countries such as the United States, Canada, and Germany is inherently decentralized, with power divided between the central government and the states or provinces. This division allows for a marketplace of innovative policy ideas and a balance of autonomy and collaboration between different levels of government.