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Being able to manipulate light and confine it to small length scales have a multitude of applications in modern technology. Predicting the behavior of nanophotonic devices and the realization of new ones will greatly benefit from insights offered by analytical calculations and numerical modeling. In this paper, we elucidate the fundamental electromagnetic responses of materials and introduce a versatile technique, called transfer matrix method, in modeling the behavior of nanoscale heterostructures. Its application in novel photonic devices such as semiconductor microcavities and surface plasmon resonance sensors will be demonstrated.