1. Your sentence is correct, but means something different.
Making the dictionary includes every stage from planning it to printing it. Editting is just one stage of that process, where an editor goes though what has been written and makes changes.
2. Your sentence is correct, but we usually use the first version.
3. Yes, you can say all of those things. In fact, we use foreign market very frequently.
4. You change that sentence that way, because being wrong is different to having a fault. You are wrong when you are incorrect about something, but having a fault usually means to have a negative personality trait. So "your fault" means a a fault in your personality
Student or Learner