[Nytrav]

So I was thinking, when the inflation in one country si higher, meaning reasonably higher, in comparison to other countries, would it attract Foreign Direct Investment? Wouldn't the foreign firms be attracted by higher prices they could get for their goods&services? This would probably only work if the country had strict import tarifs but loose policy on foreign investment, right?

[MagicNMedicine]

No because if they are getting higher prices for their goods and services in that country they are also going to be paying higher costs, including wages. And also generally if one country has higher inflation its currency will depreciate relative to others so in purchasing parity terms it get cancelled out.