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Due to globalization and development in financial integration over the last three decades, gross foreign assets and liabilities have increased dramatically in developed and emerging countries. The foreign assets and liabilities of developed countries were, on average, about 50% of GDP in the early 90s, but now reach nearly 400%. Emerging countries have historically tended to have more foreign liabilities than foreign assets, but both have gradually increased in size since the 90s. Regardless of their foreign asset and liability portfolio positions, countries are exposed to capital gains and losses from external balance caused by fluctuations in exchange rates and asset values, and the impacts become more substantial because of the size effect. For example, the cumulative gain of the United States, a country well known for huge capital gains from the external position, stands at about 30% of its GDP (annually, 1.5% of its GDP) over the last two decades, while the cumulative loss of Korea is about 20% of its GDP (annually, 1.0% of its GDP) for the same periods.