The Subdivide (WSM) modifier is similar to the object-space Subdivide modifier, and has the same parameters. In the world-space version of Subdivide, the size limit is on the mesh after it is transformed into world space coordinates.
Make a selection. > Modify panel > Modifier List > World-Space Modifiers > Subdivide (WSM)
Standard menu: Make a selection. > Modifiers menu > Radiosity Modifiers > Subdivide (WSM)
Enhanced menu: Make a selection. > Modifiers menu > Subdivision Surfaces > Subdivide (WSM)