I have been trying to figure out how a shell knows which directory you're currently in. I know there is an environment variable $PWD but when I try changing it manually, it changes what my shell shows at the prompt but commands like ls and cd are unaffected.
cd is an internal shell command so I can understand it might use info stored within the shell memory, but ls is external and yet running ls without anything will give me whatever directory I was originally in regardless what I do to $PWD.