The fundamental difference between international indirect investment and international direct investment lies in controlling the business activities of fundraisers. Because it is impossible for investors to control the economic activities of a government just by buying its bonds. Therefore, some people classify "unrestricted international loans" (unregulated) as international indirect investment and "restricted international loans" (regulated) as international direct investment.

[Text "International Investment" Revised Edition] [Now some economists abroad regard medium and long-term international loans as international investment. There are two kinds of international loans: one is "unlimited loans" that do not limit the use of loans. This kind of loan is not essentially different from buying bonds except that the creditor's rights cannot be transferred; Another kind of loan stipulates the purpose of the loan, and there are even some other restrictions. This kind of loan actually gains a certain degree of control over the business activities of the borrowed foreign enterprise, so it is regarded as a kind of direct investment.