Bakra Beverage is a financially troubled soft drink distribution company located in the Middle Eastern country of

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Question:

Bakra Beverage is a financially troubled soft drink distribution company located in the Middle Eastern country of Kumar. Kumar used to be thriving and prosperous, with an educated middle class and a booming tourist industry. About four years ago the country came under the power of an oppressive fundamentalist regime, and its economy took a turn for the worse. The new government of Kumar expelled all Western companies doing business there. The prospects of bringing Western beverages back to Kumar looked bleak until a surprising development last month, when former government ministers and their allies in the Kumari military led an uprising and ousted the fundamentalist government virtually overnight. Since then, Kumar appears to be on the road to economic recovery. United States soft drink producer BebsiCo would now like to launch a major distribution campaign in the country.

What major concerns would you have as an executive at BebsiCo regarding a distribution deal with Bakra Beverage in Kumar?

How could you structure the distribution deal to limit BebsiCo's risk?