Will put up?

[Saneta]

English Language Tests, Intermediate level

ESL/EFL Test #177 "Phrasal idioms with the verb 'put'", question 5

It was reported that Hyundai Motor Co. will ......... a car-assembly plant in the Philippines after the Association of Southeast Asian Nations and South Korea forged a free trade agreement.

(a) put up
(b) put in
(c) put up with
(d) put out

English Language Tests, Intermediate level

ESL/EFL Test #177 "Phrasal idioms with the verb 'put'", answer 5

It was reported that Hyundai Motor Co. will put up a car-assembly plant in the Philippines after the Association of Southeast Asian Nations and South Korea forged a free trade agreement.

Correct answer: (a) put up

Your answer was: correct
_________________________

1. is there:'will put up' after 'it was reported' because it is still up-to-date?
2. could it be also be according to the tense sequence:
It was reported that Hyundai Motor Co. would put up a car-assembly plant ?
3. put up=establish?
4. forged a free trade agreement= create/false/continue? a free trade agreement?

thank you very much!!!

[Beeesneees]

1/2/3. will put up = will erect (in the future)
4. created
_________________
"Inside every old person is a young person wondering what happened."
Terry Pratchett

[Saneta]

thanks
1. please explain: a free trade agreement?
2. so why can't we write: 'would put up' instead of 'will put up' according to tense sequence after:'It was reported'?

many thanks again

[Beeesneees]

1) A free trade agreement is a pact between two countries or areas in which they both agree to lift most or all tariffs, quotas, special fees and taxes, and other barriers to trade between the entities.
The purpose of free trade agreements is to allow faster and more business between the two countries/areas, which should benefit both.
(courtesy of about.com)

2) We can, but the author chose to use a different vocabulary choice.
_________________
"Inside every old person is a young person wondering what happened."
Terry Pratchett