Well, this is partially true. You may get confused when executing the script from another location or you may need to navigate back to the original folder.
You should rather use the full path to the file, i.e. 'cat /home/bob/test.txt'
Example :
cd /folder/test/
cat file1.txt
cd -
# return to the last folder, variable kept in ENV as OLDPWD.
# or
cd /home/bob/test/firstfolder/secondfolder/
cat somefile.txt
You can simply avoid all those 'cd' commands by just using the full path to the file.
another reason is you may be victim of spoofing (if . is in the PATH...) and other side effects (often with JAVA stuff...) like a program runs when you cd to the directory but fails when called from elsewhere (environment issue)...