Which is better: 2 way, 3 way or 4 way speaker??

[E-Stat]

From what I understand after reading your great comments, the number of drivers have nothing to do with a single/2 way/3 way, etc, system, meaning a speaker can have, for example, a 2 way system and at the same time has 7 drivers. Is my understanding correct?

Yes. Roger Russell's equalized IDS-25 line array employs twenty five drivers per speaker in a one-way design. The exceptional Scaena 1.4 is a three way design using twelve ribbon tweeters, fifteen midrange drivers and two subs per channel. I heard a pair driven by VTL Siegfrieds. They offer jaw dropping performance.

Which brands are better in terms of good engineering going into the research & development of the final products? How would one rate these brands.

There are quite a few very good companies making wonderful speakers. It all boils down to your set of priorities and budget!

I often hear that Japanese speakers would always rate inferior to American, Canadian and European. Is that true??

As with American brands, there are the mass market flavors and the niche market players. While I've never been fond of the mid-fi Japanese product, they do make some nice higher end stuff be it dynamic, horn or electrostat.

On the other hand, Japanese hi-fi equipment, like receivers, TV's, blue-ray players are always rated very highly. Is that so? Thanks.

As a rule, yes. Don't get too bogged down with such hard rules.

rw