The article explores how different types of investments and ownership affect the exchange rate between two countries. By creating a model with unique types of investment goods and ownership structures, the researchers found that the asset-based exchange rate is influenced more by who owns the production capacity in each country than by the amount of physical capital. This contrasts with traditional models. The study also examines how net investment positions and financial accounts change based on these factors, revealing patterns in the relationship between external balance and exchange rates.