How does XSLT deal with international characters?

Hi, All, 

      I thought someone in the list might be able to answer this question
for me. I am wondering how XSLT deals with internationalization? My
particular question is that suppose in one XML document all the tags and
contents (is it allowed?) are in English, while the other one in Japanese,
how do people handle this tranformation?  If you could refer me to any
documents explaining these issues, that would be great!

    Thanks in advance.
    Frank

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