I read that polarization is directly proportional to electric field in a linear medium. Here we neglect the higher order terms in the Taylor expansion of polarization as the values that non-linear susceptibilities take are very small of the order of 1e-10. But it is said that these terms are considered when light of high intensity is applied to the crystal. 

What is not clear to me is that if non-linear phenomena can happen at high intensities in the linear media, why do we need a non-linear medium to observe Second Harmonic Generation and Parametric Down-Conversion?

One more thing is I would like to know if a linear or non-linear medium is the nature of certain crystals or they behave like that depending on the applied intensities.

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