This thesis empirically estimates the effect of exchange rate movement on the pricing behavior of the Taiwan made Chinese medicinal preparation products. The export unit values to the ten largest Chinese medicinal preparation products importing countries are the main focus. The annual data covering the 11 years period between 1997 and 2007 are chosen for the estimation. Estimations are carried out in accordance with the country specific, the high-and-low pricing area, the market size, and the stability of the associated markets. The estimated results show that the pricing to market effect existed between large and small sized markets, but only insignificantly. Taiwanese exporting firms tended to enlarge their market sharing during the periods of devaluation of NT dollar.