Yes, it should. The granularity of the selected area/culture/organization/whatever would affect the DCs: a very "broad" choice will know general information (rulers, power groups, cultural traditions, etc.) about lots of areas, but have very high DCs to recall more obscure information. As the scope narrows, the DCs go down.
For example, someone with Knowledge (local: nation X) is in city Y (that is located in nation X) and wants to know who heads the Thieves Guild there, it might be a DC 20 check. But for someone with Knowledge (local: city Y), it would only be a DC 15 check. And it might be a DC 30 check for someone with Knowledge (local: continent Z).