FEASIBILITY AND CONTROL OF INTERNATIONALIZATION PROJECTS: APPLICATION OF FINANCIAL AND RISK MANAGEMENT TOOLS IN GLOBAL BUSINESS EXPANSION

Abstract

Business internationalization represents a crucial strategic move for companies looking to expand their operations beyond national borders, but it involves significant financial and risk challenges. This article explores the application of financial tools such as Net Present Value (NPV), Internal Rate of Return (IRR), Payback, and Monte Carlo Simulation in assessing the feasibility and managing internationalization projects. The research adopts a quantitative and exploratory approach, using a hypothetical case study of a Brazilian company planning its expansion into the European market. NPV, IRR, and Payback are used to assess the project's profitability, while Monte Carlo Simulation is applied to model risks such as exchange rate fluctuations and inflation, helping to understand different economic scenarios. Additionally, the Balanced Scorecard model is integrated into the study to continuously monitor financial and strategic performance, aligning results with organizational objectives. The analysis of the results indicates that applying these financial and risk management tools provides a robust foundation for decision-making in uncertain global contexts. The article also suggests adopting emerging technologies such as Big Data and artificial intelligence to enhance predictive risk analysis and optimize financial decisions in internationalization projects.