Questions on specific points regarding the ability to use the correct consonants, vowels, tone, stress, rhythm and intonation of a word in a spoken Chinese

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Why is it written LIU in Pinyin, when there's clearly an O sound?

Does anybody know why this decision was made in Pinyin, about not writing any hint of the sound /O/ in liu, instead of writing something like liou or liow ? Because the first reaction of any ...