This thesis is aimed at studying the relationship that exists between foreign direct investments (FDI) outwards and exports from Australia to the ASEAN countries. There are basically two types of relationship that exists between these two variables. They are: either a complementary relationship or a substitute relationship. There have been a lot of studies carried out on this area, however, most of them were carried out in other countries and not in Australia. The studies that were carried out in Australia were not empirical in nature. That is, these studies were mainly based on the analysis of the trend of exports and FDI outflow figures available. A set of simultaneous equations will be used to test the existence of either a complementary or substitute relationship between the two variables. The two equations used are: the investment equation and the export equation. The variables that will be used in each of the simultaneous equations are I, X, K, S, and R. Where I is the amount of FDI towards the ASEAN countries, X is the total amount of exports to the ASEAN countries, K is the proportion of total FDI outwards (to countries all over the world) over GDP, S is the proportion of skilled labour over the total number of labour and lastly, R is the proportion of research and development (R&D) over GDP. Furthermore, these variables are lagged by one period. The 2SLS method of estimation is used to estimate the parameters of the investment and export equations. The result of this study suggest the existence of a slight complementary relationship between FDI outwards and exports.