And when your company has an office in that country, or prominent employees have family in that country?

Perhaps do not have an office in that country. As for employees, that is their concern. Ideally the country is not willing to punish the family members of employees of companies that do not follow its draconian laws, but we know some do, such as China. Regardless, that is not a reason to capitulate; if you do so, you are effectively enabling state-backed extortion.