When searching for a file specified on the .incld directive, directories are searched in the following order:
Current directory
Directories specified by using the include option
default directories
Directory specified by environment variable ASMCOP, if it exists
Directory specified by environment variable COP, if it exists
Directory \COP
If the xdirectory option is specified, only the directories specified by the include option are used.
Any file name that specifies an explicit directory is checked for only in that directory. No other directories are searched.