diff --git a/addressfield.module b/addressfield.module
index 68b45d9..755aeb0 100644
--- a/addressfield.module
+++ b/addressfield.module
@@ -385,13 +385,6 @@ function addressfield_default_values($field, $instance, array $address = array()
   if ($default_country == 'site_default') {
     $default_country = variable_get('site_default_country', '');
   }
-  // Fallback to the first country in the list if the default country is not
-  // available, or is empty even though the field is required.
-  $not_available = $default_country && !isset($available_countries[$default_country]);
-  $empty_but_required = empty($default_country) && !empty($instance['required']);
-  if ($not_available || $empty_but_required) {
-    $default_country = key($available_countries);
-  }
 
   $default_values = array(
     'country' => $default_country,
@@ -882,6 +875,7 @@ function _addressfield_country_options_list($field = NULL, $instance = NULL) {
     $countries = country_get_list();
   }
 
+  $none_option = array();
   if (isset($field)) {
     // If the instance is not specified, loop against all the instances of the field.
     if (!isset($instance)) {
@@ -894,6 +888,9 @@ function _addressfield_country_options_list($field = NULL, $instance = NULL) {
     }
     else {
       $instances = array($instance);
+      if ($instance['required'] == 1) {
+        $none_option = array('' => t('- Select a value -'));
+      }
     }
 
     foreach ($instances as $instance) {
@@ -904,5 +901,6 @@ function _addressfield_country_options_list($field = NULL, $instance = NULL) {
     }
   }
 
+  $countries = $none_option + $countries;
   return $countries;
 }