When considering the force on a current carrying wire in a magnetic field, is $B$ in the Lorentz force $F=IlB$ the field inside the wire where the current is flowing, or is it the field immediately outside the wire?
To put it another way, is the Lorentz force greater on a piece of iron than a piece of copper (because iron has a high permeability), given the same current and H field? And if not, then does a wire experience a greater force when the entire circuit is in air rather than submerged in water (because air has a higher permeability than water)?
If the Lorentz force depends on $B$ immediately outside of the wire, how does this not violate localism? Why are the electrons being pushed to the side by the magnetic field outside the wire when they're inside the wire?
To be absolutely clear, I'm not talking about the production of the H field due to the motion of electrons in the wire. You may assume the H field is uniform everywhere. The B field only differs as the permeability of the substance differs.