I'll just quote from this node's blog post...
In general, the rule of thumb is:
- If you’re installing something that you want to use in your program, using require('whatever'), then install it locally, at the root of your project.
- If you’re installing something that you want to use in your shell, on the command line or something, install it globally, so that its binaries end up in your PATH environment variable.
...
Of course, there are some cases where you want to do both. Coffee-script and Express both are good examples of apps that have a command line interface, as well as a library. In those cases, you can do one of the following:
- Install it in both places. Seriously, are you that short on disk space? It’s fine, really. They’re tiny JavaScript programs.
- Install it globally, and then npm link coffee-script or npm link express (if you’re on a platform that supports symbolic links.) Then you only need to update the global copy to update all the symlinks as well.