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All character sets in MySQL have a default collation. Normally you won't need to change it. latin1 is the default character set for MySQL and latin1_swedish_ci is the default collation for latin1. I wouldn't change it unless you are really having problems displaying characters.
When moving from one MySQL database to another just make sure the character set of the new database is the same as the original. Data which is stored in one character set will probably become corrupted if you import it to a database that uses a different one, unless you convert it - I have no experience with this, just going from what I remember reading in the MySQL manual.